deduction under sec 24 - interest on borrowed capital

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  1. gomathi

    gomathi New Member

    If the construction of the property is completed in say September'14 and the property is not occupied for the rest of the financial year then would it be treated as not self occupied & hence would there be no limit on the interest accrued on borrowed capital. Also would like to know whether the interest accrued on borrowed capital from April'14 till September'14 will be treated as pre- construction interest n hence only one fifth can be claimed. What about the interest from October'14 to March'15 & how it would be treated.

    Is it necessary to declare the property as deemed let able to claim maximum interest accrued on borrowed.
  2. rudrabose

    rudrabose Active Member

    The interest from April to Sept won't be considered as pre-construction interest. The interest for the whole year in which the property is completed is not considered as pre-construction interest and therefore you can claim deduction of the total interest for the year FY 2014-15.

    Interest from April to Oct can also be claimed this year itself and the interest from Sept to Mar can also be claimed this year.

    If the property is self-occupied - the deduction allowed is Rs. 2,00,000 and if the property is not self-occupied - in that case there is no max limit on the deduction allowed.
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