Medicines purchase and pre construction interest

it assessess fees professional income Gross receipts from patients rs:15 lacs and medicines purchase used for treatment purpose rs:1.50 lacs and house construction pre interest rs:3 lacs f.y.22-23.
question:
1.assessee purchase of medicines and interest pre house construction treatment and allowed in it act
Replies (3)
Quick Summary
This discussion clarifies whether expenses for medicine purchases and pre-construction interest on a house can be claimed as deductions under the Income Tax Act. Generally, both are allowable, but specific conditions must be met. Medicine purchases require a prescription and proof of payment for treatment of the assessee or dependents. Pre-construction interest is deductible over five years after property completion, provided the loan is from a financial institution and construction is within the stipulated timeframe.

Medicine purchase - allowable expense

pre construction period interest allowable after completion of property in five equal installments provided other conditions are fulfilled
Medicine pur hase alliwable expense subject to z limit.

Yes, the assessee's purchase of medicines and interest on pre-construction of house can be allowed as a deduction under the Income Tax Act, 1961 but keep in mind following conditions

Medicines purchase:

The purchase of medicines is allowed as a deduction under section 37(1)(d) of the Income Tax Act, 1961, subject to the following conditions:

-The medicines must be purchased for the treatment of the assessee or his dependents.

-The medicines must be prescribed by a registered medical practitioner.

-The assessee must produce the necessary documentary evidence, such as the prescripttion and the bill of purchase.

Interest on pre-construction of house:

The interest on pre-construction of house is allowed as a deduction under section 24(b) of the Income Tax Act, 1961, subject to the following conditions:

-The loan must be taken from a bank or a financial institution for the construction of a house property.

-The construction of the house property must be completed within five years from the end of the financial year in which the loan was taken.

-The deduction is allowed in five equal installments starting from the year in which the construction is completed.

In the given case, the assessee's purchase of medicines and interest on the pre-construction of the house will be allowed as a deduction under the Income Tax Act, 1961, subject to the above conditions.

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