CA Inter doubt
Is anyone tell me what is the pre construction period taken for the calculation of preconstruction interest if loan taken on 01/07/2017 and construction completes on 28/02/2020 . Loan of rupees 1000000 @12% p.a. what is the interest will be taken as deduction under let out property.
Asked by Manoj7 May 2024554 views
Bharat · 7 May 2024
17-18 (9months) and (18-19) Pre incorporation is Rs 42000 and if loan is in continuation Current year Rs 120000 . Total Rs 162000 in pre completion year of construction previous year till 31st March pre will be considered
Manoj · 7 May 2024
Thanks 😊
Deeksha · 7 May 2024
As construction is completed on 28/2/2020 PY 2019 -20 can't be taken for pre construction period. Therefore pre construction period is from 1/7/17 to 31/3/19. Pre construction interest will be 90k + 1.2L = 2.1L. Total interest for the year if any principal amount isn't paid it shall be 1.2L + (2.1L/5) = 1.62L.
Manoj · 7 May 2024
Construction completed on 28/02/2020
Sarthak · 7 May 2024
No pre construction period interest in this case.. as Loan taken in PY 2017-18 and construction completed in PY 2017-18 itself .. so full deduction of 120000 in PY 2023-24 and interest of PY 2017-18 90,000
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