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Deduction of interest if emi not yet started

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Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2011 Hi,
I have booked a house, the possession will be after 2 years. I have taken the Home loan but would start paying the EMI once i get the possession. The interest till possession will be accrued based on schedule of payment and will be added to my loan amount till possession.
My query is - will I get the deduction of this interest during these 2 years of pre construction period even if I am not paying the EMI?

Regards
Rakesh

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 October 2011 yes. what ever accrual interest up to the possession of the property treated as preconstruction interest it can be claimed in 5 equal installment after possession

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