28 Nov PRIVATE taxation: mortgage loan get Section 54 benefit. A taxpayer filed this lady return of earnings for evaluation season 2011-12 on Sep 30, 2011 and proclaimed an overall earnings of Rs 9.62 lakh.
Throughout examination proceedings, the taxation policeman found that the taxpayer got sold an appartment, jointly held with other people, throughout relevant earlier year and stated the lady display of investment increases at Rs 55.82 lakh during the return of money. But she additionally claimed deduction u/s 54 for the income-tax work ('the Act') due to the financial manufactured from Rs 98.90 lakh towards purchase of a dull.
The taxation policeman called for added information meant for the claim for deduction. On study of alike, he mentioned your investments of Rs 98.90 lakh created for the purchase with the new house included a housing loan of Rs 50 lakh availed from a foreign lender. The tax officer sought for an explanation from taxpayer as to the reasons the houses mortgage of Rs 50 lakh committed to the acquisition associated with the new home should not be omitted from deduction advertised u/s 54 with the work. Within her defence, the taxpayer argued your construction amount borrowed was not actually used for the acquisition of the latest quarters, that deduction ended up being claimed. She published that whilst new house was actually bought vide contract outdated September 23, 2010, the houses mortgage of Rs 1 crore was sanctioned by bank within the joint label associated with taxpayer and various other co-owners on January 21, 2011, even though the quantity as disbursed on February 2, 2011. The taxpayer provided the content from the bank's sanction page while the bank-account report in support of these. It had been hence argued that once the house loan was paid, the factor for the new house got recently been duly compensated.