Housing Loan Interest

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This query is : Resolved

ADITYA (Querist)

05 July 2009
The interest on Housing Loan for a residential flat (under construction & possession is not given by Builder) can be claimed as a deduction within limit of Rs 1,50,000/= ?

The principal re-payment can also be claimed as deduction ?

Jitender

Jitender (Expert)

05 July 2009 if house is under construction then benefit of intt is not available. However, benefit of principal can be availed.

ADITYA

ADITYA (Querist)

06 July 2009 Jitender Sir,

Please tell me the provision/s for getting income tax benefit on the principal loan re-paid before possession.

Thanks

suren

CA Bosu babu

CA Bosu babu (Expert)

07 July 2009 on principle no benifit ya.....and benifit is on interest only....such pre completed n possessed interest can be availed in 5 installments after building is ready for use n in your possession.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

07 July 2009 The interest paid will be treated as Pre-Construction Interest and deduction will be available accordingly.
No deduction of Principal repayment u/s 80C.

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