DEDUCTION OF INTEREST ON LOAN, Income Tax

[S.C. WADHWA]

Mr. A gave ₹ 5 lacs to a builder for purchase of flat in delhi and took a loan of ₹ 10 lacs. Finance Co. gave ₹ 10 lacs directly to builder for purchase of flat on behalf of Mr. A. Thus, total cost of flat purchased by Mr. A is ₹ 10 lacs.

The flat contruction was completed after three years i.e. three years after giving ₹ 15 lacs. During these three years, builder paid interest to Financ Co.

During the financial year 2012-13, Mr. A obtained possession of flat and paid interest of ₹ 300000/-.

Mr. A had now two flats one in delhi and 2nd in haryana.

Query is

How much deduction will be available on account of interest and in which manner.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.