According to area 24B, focus compensated on a home loan shall be permitted as a reduction in the course of calculating revenues from premises property.
Part 48, 49 and 55, suggest the way in which of computation of finances achieve and the prices which shall be thought about for the purpose calculating the administrative centre income. This area cannot explicitly specify perhaps the focus remunerated on a home loan can be considered as a price of acquisition to compute resources get for sale of quarters belongings.
Put differently, tax Act is actually quiet whether an assessee can maintain the dual benefit for deduction under point 24B in addition to adding the same desire for the expense of acquire at the time of home computers financing acquire at a discounted price so house home.
Purchase of ITATs& Maximum Courts
Various instance laws are having various decision associated with this precise problem of double deduction of home mortgage focus.
ITAT Chennai Bench (ACIT v C.Ramabrahmam) in 2012
The assessee lent some finances for purchasing a residence residential property. The attention spent the thought debt is alleged by the assessee as a deduction u/s 24(b). As soon as the house residential property got offered, the attention paid about thought mortgage would be handled as “cost of order” and reported as a deduction u/s 48 in processing the main city gains. The evaluating supply arranged that since curiosity was in fact allowed as a deduction u/s 24(b), it could not authorized again in calculating cash improvement.