Loss from Interest from a house property not yet acquired

 waiting for the reply guys

no, U Can't Take Interest as deduction from CG.

& here there is no relevancy of Resident or non resident

Shouldn't the interest on the housing loan be counted as Investment Expense ? After all, I am investing in an immovable property and taking a loan for it ?

Can anyone clarify my question ?

Shouldn't the interest on the housing loan be counted as Investment Expense ?

 Doesnt somewhere in sec 43(definition of cost) isnt it said that interest paid or payable before the asset is put to use forms part of cost of the asset..if so doesnt it form part of cost??

 so cant it be part of cost of acquisition?

Since I didn't take possession of the house, all I have is an allotment letter. The interest I paid, is after the possession of the allotment letter.

Basic common sense tells me that interest paid should be basis of cost of aquisition - but there is some confusion. Hence asking opinion from the learned forum members.

 srry sir am nt any of those learned members..i just gave my opinion as to wat i hav gone thru in my curriculam...i hope some experts goes through this to give der opinion

Please refer to the post in https://www.taxworry.com/2008/11/can-interest-paid-on-loan-taken-for.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+FAqOnIndianIncomeTaxLaws+(F.+A.Q.+on+Indian+Income+Tax+Laws!).

It seems interest loss can be a basis of cost calculation, if it has not been claimed previously.

 So, if the interest was already taken as deduction under I T Act, the interest can not be claimed as deduction, but if the interest was not taken as deduction under I T Act , it becomes cost of acquisition of asset and accordingly will be deducted while computing capital gains.

That explains it sir..anyway nice piece of info for me..thanx

i think it is of the nature of capital Exp. as it is before of construction period nd no deduction is taken in the head of house property till date,thus it should be treated as Cost of acquisition...

intt. should be treated as a cost of improvement & it should be deducted having being indexed taking index rates of the year when such payment (intt. ) was paid.

Dear Narender,

                             Did you go through that link posted about a case law...There it suggests that its part of cost of acquitions..So how come its cost of improvement ....

Just as aquisition cost is indexed, so should interest payments be indexed to the date it is sold. Just that different years interest payment should be indexed different.