banner_ad

Housing loan

This query is : Open 
Profile Image

Profile Image

(Querist)
01 April 2011 If a salaried employee has taken housing loan but he could not get the possession of the property in the first year while he paid the first installment of principal & Interest.
Then he can take the tax benefit on that amount in the following 5 years as 1/5 each year.But please tell me if that person pays off the loan just in 3 years then what will be the treatment of the left 2/5 portion of housing loan int+ principal.Can he claim it in the third year only.
Profile Image

CMA. Subhash Kumar Jha

Profile Image

CMA. Subhash Kumar Jha (Expert)
01 April 2011 1st of all Only interest can be claimed for Pre-possession period. Principal repayment in this period can not be claimed.

Now... the total interest paid during pre-possession period (known as pre-EMI interest) can be claimed 1/5 in 5 consecutive FY starting from the FY in which the possession has been taken.

Even if the total loan has been repaid in 3 years, he can continue to claim the 1/5 of the pre-EMI interest for next two years.
Profile Image

CA Archana

Profile Image

CA Archana (Querist)
01 April 2011 ok,Thanx Subhash
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details