Hi, 

As per Sec 80EE, can we get deduction of interest for loan when the house is under construction assuming all other conditions of the section are satisfied.

Sec 80EE explicity uses the word "ACQUISITION", can we extend the section to even construction purposes for the benefit of assesee ?

Posted 2 years, 11 months ago by Rakesh Bharadwaj


Section 80EE says aquisition of property and not contruction of property. Its evident from the wordings that deduction is available only for aquisition and not contruction of property.

Posted 2 years, 11 months ago by Rahul Rai


But was that the intention of the section ? 

Posted 2 years, 11 months ago by Rakesh Bharadwaj


Yes that seems to be the intention of section to increase the sales of flats since the real estate market was down in 2013-14.

Posted 2 years, 11 months ago by Rahul Rai


But many assessees are claiming even the construction is in progress? Many tax advisers are telling we can claim.

Posted 2 years, 11 months ago by Rakesh Bharadwaj


Do you have any solid reason for that or they are doing it in confusion. I can not find any explanation on that.

Posted 2 years, 11 months ago by Rahul Rai


Rahul 

Where does the section explicitly disallow for construction-in-progress  ?

Posted 2 years, 11 months ago by Rakesh Bharadwaj


But it does not allow also. The section says aquisition of property. Aquisition can be only of the completed property and also the deduction is not for loan amount but interest amount.

Posted 2 years, 11 months ago by Rahul Rai


Rahul rai. 

If you analyse the section carefully, you will notice that the Possession of the house property is not the Important event, there should be an agreement to buy a residential property, a home loan must be sanctioned on or after 01-04-2013. So i feel if you have made an agreement to buy a flat or property, even if it is under construction u can claim 

Posted 2 years, 11 months ago by Rakesh Bharadwaj


But the property should be HOUSE, house is called house only if its completed. Section says aquisition of property and not construction of property.

Posted 2 years, 11 months ago by Rahul Rai


Rahul rai

i think this section will have lot of litigations. Eventhough this section is just for 2 AYs, i feel it has far reaching impact on department and assessees.

Posted 2 years, 11 months ago by Rakesh Bharadwaj


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