Whether the provision of 80TTB amended for the year 2018-19 which allows deduction upto Rs.50,000/- on interest income are applicable on interest earned in Senior Citizen Scheme 2004 and interest earned on RBI Bonds.
Building purchased for 100 lacs.from Ajay Properties on 1 July 2016
Amount spent on further construction =20 lacs
Total Project Cost=120 lacs
ICICI Bank gave loan at 75% of project cost @ 10% p.a
(120 lacs*75%=90 lacs)
Whoie amount repaid after 6 months including interest
Construction was complete by 31 Aug 2016
Pass Entries for Asset Purchased,Loan Taken,EMi and Interest Repaid
Building WIP Dr 10000000
To Ajay Properties A/c 10000000
(Being building purchased.)
Loan from ICICI bank:
Bank A/c Dr 9000000
To ICICI 10% Loan A/c 9000000
( Being loan amount received.)
Building WIP Dr 2000000
To Bank A/c 2000000
(Building construction charges)
Interest on loan from ICICI bank (1 st july to 31 st August 2016)
Building WIP A/c Dr 150000
To ICICI 10% Loan A/c 150000
(Being interest on loan during construction is capitalized.)
Interest on loan from ICICI bank ( 31 stAugust 2016 to 31 st December 2016)
Interest On Loan A/c Dr 300000
To ICICI 10% Loan A/c 300000
(Being interest on loan charged after Construction Completed booked as expense)
Building Dr 13500000
To Building WIP Dr 13500000
(Being construction of building finally completed.)
Repayment of loan:
ICICI 10% Loan A/c Dr 9450000
To Bank A/c 9450000
( Being loan repaid.)