Interest u/s 24

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2017 My client have taken loan in 2010-11 for purchase of flat. Its possession is handed in march 2017. total int upto 31.3.2016 is 11,15,931. Interest for fy 31.03.2017 is 1,48,425. I have doubt that possession is more than 5 years from date of loan so will he not be allowed deduction of 200000? and does limit of possession within 5 years of loan is also applicable on pre construction interest also. Please guide in detail about taxability...

CA Gopal Somani

CA Gopal Somani (Expert)

15 March 2017 Yes, if the property is not acquired/constructed completed within 3 years from the end of financial year in which the loan was taken, the interest benefit in this case would be reduced from 2 Lakhs to Rs 30 thousand only. This limit of 3 years has been increased to 5 years from Financial Year 2016-17 and onwards.

As per my understanding He will not get the full deduction of 2 Lacs. Would appreciate suggestions from other experts as well.

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2017 Does this time limit of 5 yrs apply for loan started in fy16-17?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

01 August 2024 You're correct that the time limit for claiming the full deduction of interest on a home loan was extended from 3 years to 5 years from the Financial Year (FY) 2016-17.

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