23 July 2017
I had taken a Home Loan in Dec '2013 for buying a Flat on CLP Plan. I have been given possession of the Flat in March '2017. As per Section-24, Interest that has been paid before the completion of construction should be aggregated and the whole aggregated amount shall be allowed as tax deduction in 5 equal installments for 5 successive Financial Years starting from the year in which the construction has been completed. In last 2 years, the Interest on my Home Loan was more than Rs. 2 lacs per annum. Is there any annual limit on the Pre-Contruction Period Interest on Home Loans for claiming deduction under Section-24? Or I have to just add the full Interests paid by me in the last 4 Financial Years and divide the total in 5 equal instalments for getting Tax deduction.
CAclubindia
