Housing Interest
This query is : Resolved
28 January 2011
I purchased on house before last 6 month which is under construction & i took the loan from bank for the same. My EMI was started. Bank charges interest amount. Shall i get the benefit of full interest amount as per the certificate given by bank fro this year i.e. April 2010 To March 2011. Pls guide. I am not getting the possession of house.
Gaurav Barmera
(Expert)
28 January 2011
You can not claim any income tax benefit on this pre-EMI interest in the year you pay it to the bank.
Pre-EMI interest can be claimed in 5 equal instalments after the construction of the house ends. That is, it can be claimed in 5 equal instalments starting from the FY in which the construction of the house ends and you get its possession.
This pre-EMI interest should be claimed along with the interest component of the EMI under section 24. The overall limit remains Rs. 1.5 Lakhs even in this case.
Pre-EMI interest can be claimed in 5 equal instalments after the construction of the house ends. That is, it can be claimed in 5 equal instalments starting from the FY in which the construction of the house ends and you get its possession.
This pre-EMI interest should be claimed along with the interest component of the EMI under section 24. The overall limit remains Rs. 1.5 Lakhs even in this case.
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28 January 2011
No IT benefit till the possession of the house.
Total interest paid before possession is called "Pre EMI interest".
You can claim 1/5 of such pre emi interest every year for 5 year starting from the year in which you receive the possession.
No benefit for principal repayment before possession.
Total interest paid before possession is called "Pre EMI interest".
You can claim 1/5 of such pre emi interest every year for 5 year starting from the year in which you receive the possession.
No benefit for principal repayment before possession.
Guest
Guest
(Expert)
28 January 2011
Agree with Mr. Jha
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