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Subvention scheme

473 views 3 replies

shalini

528 Points Joined March 2013

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 on this interest payment to bank u/s 194A and it is reflecting in buyer's 26 AS. If yes, then why is it interest income of the buyer?

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208880 Points Joined July 2016

Because the loan is taken by the buyer of the property, and the interest payment is liability of the loan borrower.

rama krishnan

12244 Points Joined May 2017

Yes, the interest payments made by builder on behalf of purchaser is interest in the hands of purchaser. the same can be claimed as deduction as either pre construction period interest or interest paid on borrowed capital by purchaser