Housing Loan Interest

This query is : Resolved

ADITYA (Querist)
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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)
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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)
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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)
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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)
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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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