Is the interest of pre construction period of pasision year added in instalment interest?
i.e
if a person take pasession in jan 2009 then the interest of period april 2008-dec 2008 will be added in 2008-09 interest deduction under 24 (b) or added in pre passesion interest which is addede in five instalment for exemption.
the full amount of interest in the year of possession is allowed as in this case interest for the period april 2008 to jan 2009 will be also added to the amount of current interest and not in the pre construction period
ya it should not be taken as pre-construction period interest.
only interest upto 31-3-2008 should be taken as pre-construction period interest.
interest from 1/4/08-31/12/08 should be claimed for A.Y 2009-10
yes, it should be taken as current year interest and not as pre-construction period interest.
So, both Trinath and Ashish Gupta are right................
CAclubindia
