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POSTED BY ON May 22, 2013 3:01 pm COMMENTS (2)
In This financial year 2013-14 my friend will get possession of his flat which is still under constructed. During last financial year 2012-13, he had paid some amount in the form of EMI which includes Interest on Home loan also. Now its time to file ITR and he is confused how he can show IT DEpt, the amount of Interest paid during under construction stage of flat whereas in this financial year he will get possession of his flat. which ITR Form he has to fill.
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Section 24 of the Income Tax Act states that if a property is still to be constructed, there will not be any deductions on the interest payment all of those years. The interest for the pre-construction period can be availed for the deduction in the 5 equal installments from the year the construction is complete. So your friend cannot claim any interest deduction for loan paid.
Regarding which income tax return form to fill :
There are different Income Tax returns form based on
Who has to fill (individual, Hindu Undivided Family(HUF), Business etc). Fourth Character in PAN specifies the type of tax-payer. For Individual’s it’s P , HUF it’s H, Firms F etc.
Whether a resident of India or not Our article Non Resident Indian – NRI explains who is NRI?
On types of Income earned ex: Income from Capital Gains or Income from House Property.
On whether losses are carried forward or not.
Our article Which ITR form to fill explains it in detail
Dear Etaxmentor, your client ‘ll not get interest benefit for the under construction stage for FY 2012-2013. The same can be claimed only after the possession of the flat. So the routine form for him or her ‘ll be ITR-1 for salary + interest income & in case any capital gain is there, it ‘ll be ITR-2.
Thanks
Ashal