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Tax benefit on home loan transfer

bharat (MBA) (30 Points)

16 September 2014

Please advise how I would get Tax benefit on my home loan transfer from one bank to another bank,

Here is my details

1) Taken Home loan Rs.20 Lac (A) from ABC bank in 2005
2) Taken Top-up Rs. 6 Lac (B) from same ABC bank in 2013 for renovation.

3) Transfer Home Loan (A) and Top-up (B) into XYB bank as new home loan Rs.26 Lac (C)

My house is self-occupied and construction was completed within 3 years.

Thanks for help in advance !!!

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2 Replies

Shubham Goyal (.) (35 Points)
Replied 16 September 2014

You can take prior construction period interest deduction under the head of house property in five equal installments. Please note principal payment is not allowed as deduction for prior period. You can claim the interest and principal part as deduction from when the house construction has completed. Interest part in house property head and principal part in 80C

1 Like

bharat (MBA) (30 Points)
Replied 07 January 2015

Originally posted by : bharat
	Hi Please advise how I would get Tax benefit on my home loan transfer from one bank to another bank, Here is my details 1) Taken Home loan Rs.20 Lac (A) from ABC bank in 2005 2) Taken Top-up Rs. 6 Lac (B) from same ABC bank in 2013 for renovation. 3) Transfer Home Loan (A) and Top-up (B) into XYB bank as new home loan Rs.26 Lac (C) My house is self-occupied and construction was completed within 3 years. Thanks for help in advance !!!