Example:- Loan Taken on 01-05-2006 of ₹ 5,00,000. Construction ends on 07-09-2012. Rate of interest is 1%. Calculate interest for pre-acquisition period?

Chapter No. 04 - House Property - Deductions - (Sec. 24)

Pre-Construction/Acquisition Period = 01-05-2006 to 31-03-2012

Pre-Construction/Acquisition Interest = 3,55,000 (5,00,000*71 Months*1%)

Pre-Construction/Acquisition Interest Deduction for Financial Year 2012-13 to 2016-17 = 71,000 (3,55,000/5 )

Interest from 01-04-2012 to 31-03-2013 shall be allowed as deduction in current Financial Year. (Interest from 01-04-2012 to 07-09-2012 shall not be considered as Pre Acquisition/Construction Period.

Dated: 17-8-2015