HDFC Home Loan Interest
This query is : Resolved
06 July 2022
Self Occupied Property for which possession was given in March 22
For earlier FY from 15-16 to 20-21 interest and principal amounts were repaid on housing loan to HDFC Ltd
The interest was not considered since possession was not given
My question is whether in FY 21-22 year in which possession was given interest for earlier years can be considered as interest on pre construction period ? I can go back how many years and what will be quantum of deduction ?
For earlier FY from 15-16 to 20-21 interest and principal amounts were repaid on housing loan to HDFC Ltd
The interest was not considered since possession was not given
My question is whether in FY 21-22 year in which possession was given interest for earlier years can be considered as interest on pre construction period ? I can go back how many years and what will be quantum of deduction ?
07 July 2022
Yes, consider it as pre construction period interest and claim it in next 5 years.
You can consider interest from 15-16.
You can consider interest from 15-16.
07 July 2022
Actually the repayment has started from FY 2011-12.
Whether Interest paid from FY 2011-12 be considered as pre construction period interest and claim it in next 5 years.
Whether Interest paid from FY 2011-12 be considered as pre construction period interest and claim it in next 5 years.
07 July 2022
Yes, you can consider it from 2011-12.
07 July 2022
Yes, consider the entire interest paid during the period of construction. Take 1/5th of the total interest paid on EMIs as a deduction in the next 5 years.
07 July 2022
Is there any upper ceiling for interest ?
07 July 2022
Upper ceiling of 2 lacs for self occupied.
No ceiling for rented house.
No ceiling for rented house.
07 July 2022
Let me quote here the explanation given under sec 24(b) of IT act...
Explanation.—Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal installments for the said previous year and for each of the four immediately succeeding previous years:
Explanation.—Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal installments for the said previous year and for each of the four immediately succeeding previous years:
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