Interest u/s 24

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)
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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

Aashok Kumar Sharma (Expert)
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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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