housing loan taken in 2001-02 for bungalow and repaid in 2010-11 interest paid Rs. 5 lacs. Construction of bungalow completed in March12 another fresh housing loan taken in April 11 for same bungalow whether Pre emi interest is available as deduction from FY 11-12 on interest paid of rs. 5 lacs in 5 equal instalments . The bungalow is let out and interest of new loan has also started.
in 1st case no.. interest on construction of house is allowable. not for payment of interest part { interest on interest}
in the second case :- if property is let out than interest deduction is not allowable .. dis is for self occupied.
take advice of other members too..
SSGS and Associates
Chennai
CA Inter
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