I had taken a home loan in Sept 2005 for purchase of flat in Delhi NCR & till date I have not taken possession of the flat bcos although the builder has sent me a letter asking me to take possession of the house, the society is not still in a liveable condition.Construction is still going on in other blocks & lot of work with regards to landscaping, parking etc is pending.
I am made to understand that for claiming home loan tax rebate you have to take possession of the property within 3 years from the end of the financial year in which the loan was taken OR else I will never be able to claim tax rebate for this home loan. So in my case since I had taken the loan on Sept 2005, I need to take the possession of the house by 31st March 2009 ( 3 years from the end of the financial year in which loan was taken ie 2005 .
Now someone also told me that this is not true & I can claim tax rebate upto 5 years from the end of the FY in which loan was taken ie in my case till 31st March 2011.
pls someone clarify as to which of teh above is true & also give the relevant income tax clause for fighting out the same with my employer.
24 March 2009
The insterest so paid before construction of the house is called interest on preconstruction period and the interest paid later to such date of construction is called interest on post construction period. Interest on pre constrction period has to be claimed in 5 equal annual installments and the return be furnished and the interest on post construction period can be claimed from the date of completion of construction and the return can be furnished accorndingly.
Thanks for your reply but it does not answer my specific query.
I had asked under which section or sub clause of the Income Tax Act is interest on home loan eligible for rebate if possession is got after 3 years from the end of the financial year in which loan has been taken; pls inform the relevant section or clause ?
I would request any other honorable member of this forum also if they can help
CAclubindia
