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Prashanth (Sr.)     25 September 2009

preconstruction period interest

an individual taken loan on 1/4/07 and the construction of house was completed on 31/3/08. Loan has not been repaid till 31/3/09. what will be the preconstruction period interest?? where can assesse claim interest for the period 1/4/07 to 31/3/08??

 12 Replies

Have a lot to achieve

Have a lot to achieve (C.A. B.Com(H))     25 September 2009

Preconstruction period should be 01/04/2007-31/03/2008. Interest for this period is allowable while computing the income from House Property as also allowable.


no, preconstruction period because the house is completed in the same year in which loan was taken



Prashanth (Sr.)     25 September 2009

Originally posted by :Mukesh Kumar Rawal
" no, preconstruction period because the house is completed in the same year in which loan was taken


i agree wiht mukesh opinion and my doubt is where we can claim this interest??


Shashank (Article)     25 September 2009

The construction of the house was completed in same PY in which the loan was taken. So there is no per-construction interest. The interest for 07-08 will be fully claimed in the same PY.

Sunil Liladhar Kotak

Sunil Liladhar Kotak (Manager (F & A))     25 September 2009

Yes Mukesh's view is right


 CA Ankit B Jain

CA Ankit B Jain (Bajoria & co)     25 September 2009

 Preconstruction interest is not to be taken into consideration as the house is completed in the very same year in which loan is taken.

Hence no deduction u/s 24. . . . .

Anup rathi

Anup rathi (CA FINAL)     26 September 2009

Condition for preconstruction intrest is dat of 3 yrs from the date of loan taken dat also if the house is not completed withing 3 yrs if the house is completed within d same year in wich  loan is taken no preconstruction int will come into the pic

CA Parth Shah

CA Parth Shah (Chartered Accountant)     26 September 2009

u cant take it as preconstruction period as constructn has been completed in the same year.. obviously u can claim d interest as deduction as regular provisions.





There is no pre-construction period interest, as the commencement and completion of of the property was in the same financial year. The interest on housing loan for current  year can claim.........

Krutesh Patel

Krutesh Patel (ACA)     27 September 2009


No Pre construction period to be considered because it has been completed in same year.

Girish Mathuria

Girish Mathuria (STUDENt)     25 October 2009

no, preconstruction period is there because the house is completed in the same year in which loan was taken..................
so he cant claim for interest..

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