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Showing posts from December, 2015

The tax collection has increased enormously in the last decades. It would continue to show increasing trend with the efficient use of Information Technology. Now, efficient utilization of the fund is necessary for the growth of the country. The fact remains "A person should be taxed according to his means- Talmud." Readable format accessible at http://ssrpn.com/article-details.php?id=1351

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Laws are tools to balance the society. Senior citizens, disabled, authors,etc have a tax benefit. Tax Talk- my weekly column. Word format accessible at- http://ssrpn.com/article-details.php?id=1349

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Surprising it may sound. but the fact is that income tax is not on income always. Access at http://ssrpn.com/article-details.php?id=1347

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Housing loan & tax treatment of pre-construction period interest

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TAX TALK-07.12.2015-THE HITAVADA
TAX TALK

CA. NARESH JAKHOTIA Chartered Accountant
Housing loan & tax treatment of pre-construction period interest

Query 1] I have booked flat in under construction project in pune, costing Rs. 52 lacs. The possession is expected in Nov. 2017.Now my question is whether the amount paid to the builder through bank loan (Principal and Interest) before the actual possession of the flat is eligible for tax exemption? If yes, how could I claim the Refund of the said amount? [narayan.parjane@gmail.com] Opinion: Housing loan offers tax sops. Interest paid on amount borrowed for purchase/construction of house is eligible for deduction u/s 24(b) of the Income Tax Act-1961 up to a maximum of Rs. 2  Lacs p.a in case of self occupied house property. Earlier, there was a max cap of Rs. 1.50 Lacs which is enhanced to Rs. 2 Lacs by the Finance Act-2014 (for the FY 14-15 & onwards).  Additionally, principal repayment of housing loan is also eligible for deduction u/s …