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Accrued interest on home loan

01 March 2019

can an assesse claim interest on capital borrowed for construction of his self occupied house where in the builder has taken 7 years to construct the house but posession yet not given but the benefit of such interest has not been claimed by the assesse

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6 Replies

Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 01 March 2019

The total interest shall be allowed as deduction under Sec 24b in 5 equal installments, beginning from the year in which you get possession.

Adhiseshan (PROFESSIONAL) (80 Points)
Replied 01 March 2019

Deduction on home loan interest cannot be claimed when the house is under construction. This pre-construction interest can be claimed only after the construction finished in five equal installments.

SHIVANI KUDTARKAR (511 Points)
Replied 01 March 2019

construction has to be completed within 5years from the end of the F Y in which capital was borrowed

subhagan sreerangam (7039 Points)
Replied 01 March 2019

thank you and congratulations

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 02 March 2019

as per act, the construction of property should be completed within 5 years from the end of f. y. in which capital borrowed to claim interest on borrowed capital as deduction. but there are lots of case laws in favor of assessee which permits to claim interest on borrowed capital as deduction even if the construction has not been completed within 5 years