If you've taken a home loan for a plot purchase and plan to construct a house, you may be eligible for income tax deductions. Interest paid on the loan can be claimed under Section 24, and principal repayment under Section 80C, provided you opt for the old tax regime. Importantly, deductions for interest paid before construction is complete will be allowed in equal instalments over the subsequent five years; no deduction is available until the house is finished.
23 August 2020
Mahesha R ji, You can claim interest paid on the loan u/s 24 and principal repaid u/s 80C subject to the conditions and limits specified under those sections. Please note that, these deductions are available only if you adopt old tax regime.
25 August 2020
Thanks sir and my home loan is taken for the purpose of Plot Purchase and i am going to construct the House cumming year.For this also available for claim?
19 December 2021
The interest paid till the house is complete, will be allowed to be deducted in next five years in equal installment. No deduction eligible till the house gets completed.