Interest deduction under home loan

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Ravi Kumar Rajgaria (Querist)
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12 March 2009 i took a loan for 75 lacs for construction on April,2008 and started construction from same month and paying EMI from April,2008 onwards to bank.

Can i claim interst paid for Rs. 150000/- on loan as deduction u/s 24(b) for the FY 2008-2009 as construction is still going on?

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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12 March 2009 you can claim interest deduction for the current year on the outstanding amount of loan but not Pre-construction period interest because still construction is going on.

C A GROUP COACHING

C A GROUP COACHING (Expert)
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15 March 2009 WILL YOU CONSTRUCTION GET OVER / PROPERTY READY FOR OCCUPATION ON OR BEFORE 31.03.2009 IF YES THEN YOU CAN CLAIM INTEREST IN THIS YEAR ELSE YOU WILL HAVE TO ACCUMULATE YOUR INTEREST TO BE CLAIMED IN 5 EQUAL INSTL STARTING FROM WHEN THE HOUSE IS COMPLETE READY FOR OCCUPATION & INT FOR THE YEAR IN WHICH CONST. IS COMPLETED WILL ALSO BE CLAIMED AT FULL IN THE SAME YEAR ALONG WITH 1st INSTL OF ACCUMULATED INT.YEAR

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