Interest Payable by an assessee in respect of funds borrowed for the acquisition or construction of a house property and pertaining to a period prior to the previous year in which such property has been acquired or constructed, to the extent it is not allowed as a deduction under any other provision of the Act, will be deducted in five equal annual instalments, commencing from previous year in which the house is acquired or constructed.

Pre-construction period means the period commencing on the date of borrowing and ending march 31 immediately prior to the date of completion of construction /date of acquisition or date of repayment of loan, whichever is earlier.

We at Taxmantra.com have the requisite expertise in handling individual taxation. We provide full fledged services with regard to individual taxation, Tax Return + Tax Support + Tax Planning .