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Preconstruction period interest

amit (sddsfd) (116 Points)

04 April 2014

Dear All,

Pre-constructin Period Interest is allowed in 5 equal installments. But If I wont able to claim Preconsutruction Period Interest because my House Property is Self Occupied Property [SOP] limiting upto Rs.150,000 interest limit for 1st 2 years.

Then after 2 years my SOP become Let Out Property [LOP] Thereby I able to claim unlimited inerest where can I take the benefit of per-construction period interest which was lost in 1st 2 Years as I unable to claim it due to SOP Limit to Interest.

Please can anybody clarify

Regards

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2 Replies

Mayank Mall (CA-Final) (316 Points)
Replied 05 April 2014

As far as I understand, I think the provision clearly states 5 EQUAL installments, so you cannot add the lost interest deduction to the balance 3 years and change the installment amount.

I think you cannot take the benefit of the lost interest due to this equal installment pattern.

I Maybe wrong, so please wait for anyone else to clarify as well.

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2010 Points)
Replied 05 April 2014

Dear Amit,

in case of Self occupied property, maximum deduction allowed for interest is INR 150000/- including interest for preconstrucion period. Hence in that case you are not allowed to take benefit of more then that.

apart from this you are also not allowed to carryforward the unclaim interest to next year.