Deduction benefit on DLOP with paid interest for pre-construction period

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  1. Rahul K

    Rahul K New Member


    Kindly assist in below case for deduction under section 24 for housing loan interest-

    • In case of two house property. Property 1 shown as SOP and 2nd property shown as DLOP property for current FY.

    • For deduction of 2nd housing loan interest from current FY i.e. 2015-16 & onwards because the said property possession has been got on 13th March 2016 (which is under construction since Oct-2012) and paid the interest for said property on pre-construction period for the FY 2012-13, 2013-14 & 2014-15 –

    Loan take of 2nd house property is on October-2012

    Paid interest for the FY 2012-13 Rs. 76,026/-

    Paid interest for the FY 2013-14 Rs. 4,03,569/-

    Paid Interest for the FY 2014-15 Rs. 3,97,918/-

    Total Interest paid for pre-construction is Rs. 8,77,513/-

    As per tax rules this paid interest on pre-construction period will be divided into 5 equal FY i.e. Rs. 1,75,502/- of every FY.

    Details of paid interest for both property in current FY is under–

    1st Property (SOP) Rs. 1,16,741/-

    2nd Property (DLOP) Rs. 2,93,772/-

    After possession 2nd property will shown as DLOP and property 1st is as SOP. received possession of 2nd property on 13th March 2016.

    So that as per my understanding & according to above case enclosed the working of deduction -

    Please go thru the enclosed working and above details and suggest in case of any correction need to be take care.

    Rahul K

    Attached Files:

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