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IFHP
Direct Taxation
What will be the pre construction period in this question.Also what will be the amount of interest for that period? If possible please provide complete solution of this question
Answers (9)
ak
pre construction period - 1/4/19 to 31/3/20
But pre construction period is later of date of starting construction and date of loan so shouldn't it be 15.7.19?
The period prior to the previous year in which the property has been acquired or constructed is called pre-construction period. Interest paid during this time can be claimed as tax deduction in five equal installments starting from the year in which the construction of the property is complete. PY in which property constructed - PY 2020-21 Pre construction period - Date of loan to 31st Mar before PY 2020-21. i.e 15/7/19 to 31/3/20
Thread Starter
Priyanka UdeshiSo Maam it would be PCP=8.5 months? Correct?
Yes.... 1500000x10%x 258/365=106028 is preconstruction interest
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