If the house property had already been
completed before the receipt / sanctioning of top-up loan then it is not
possible to claim this additional interest amount on account of top-up loan as
additional expenditure, as in order to avail deduction on borrowed capital
there had to be a nexus (connection) between the capital borrowed for
acquisition or / construction and the interest paid.
When the
acquisition or / construction had
already been completed this additional loan can not be stated to be used in
connection with acquisition or / construction of such house property.
However if the
house had not been complete then this additional interest can be added to the
interest payable on the original loan & claimed as one deduction. Likewise if
the house had been completed earlier but the second loan –whether top-up or
additional - is taken for repair, renewal or /
reconstruction this additional interest can also be claimed even if the
first loan had not been repaid.
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