Subvention scheme

shalini (CA) (525 Points)

30 July 2019  

Hi. If builder is paying interest on home loan directly to bank on behalf of buyer as per subvention scheme , will it be considered as interest income for the buyer. Builder has deducted TDS u/s 194A and it is reflecting in buyer's 26 AS. Also Can the buyer claim this pre-construction interest after completion of construction as it is paid by bank on his behalf.

Please clarify.