IT BENEFITS ON HOME LOAN ...

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This discussion clarifies tax benefits related to home loans, particularly under Section 24 and 24A of the Income Tax Act. It explains that interest deductions on a home loan are typically claimable only after taking possession of the property. For properties under construction, interest paid can be claimed in five equal instalments after possession. However, if possession isn't taken within five years of the loan start date, the interest deduction is limited to £30,000. Revising past tax returns to claim these benefits retroactively is generally not possible.

B K D

B K D (Querist)
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15 October 2021 GREETINGS !!

I WANT TO UNDERSTAND HOW I CAN TAKE BENEIT SECTION 24 OR 24A OR HOUSE PROPERTY OR HOME LOAN .. THE SCENARIO IS AS FOLLOWS ..

I HAVE AN APARTMENT IN MAHARASHTRA ( NO HOME LOAN ) OCCUPIED BY PARENTS WHICH I THINK CAN BE CONSIDERED AS BOUGHT LET OUT OR DEEMED LET OUT .. I BOUGHT AN APARTMENT UNDER CONSTRUCTION IN KARNATAKA IN JAN 2016 WITH A HOME LOAN .. HOME LOAN WAS ALSO TAKEN IN JAN 2016 .. THE APARTMENT IS STILL UNDER CONSTRUCTION .. KINDLY LET ME KNOW HOW I CAN TAKE THE DEDUCTION BENEFIT FOR THE SAME .. ALSO I NEVER TOOK THIS BENEFIT IF ANY SINCE 2016 .. CAN I AVAIL THAT BENEFIT BY REFILING MY IT RETURNS FROM 2016 ...

KINDLY GUIDE

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 October 2021 For self occupied property, first and for most condition to avail interest deduction of Rs. 1.50L from home loan, is you should have got the possession of the flat within 5 years. As you have not got the possession till now, your deduction is limited to Rs. 30,000/-
For reference:: https://cleartax.in/s/house-property

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 October 2021 Refilling or revising any of earlier ITR is not of use.
Only if you wish to give it on rent, you will be able to deduct the interest paid for home loan to full extent. (i.e. for let out property)

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B K D

B K D (Querist)
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15 October 2021 thanx for the response ... but even if i want to avail the tax benefit since 2016 by refiling the ITR since 2016 wont help ??

Also since i have one ready apartment i cannot take the benefit of section 24 for interest paid on the other apartment ??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 October 2021 1. The deduction u/s. 24(b) of the act, starts only after getting possession of the house property.
Whatever interest paid during construction period, can also be claimed after getting the possession (in 5 installments); but in your case total deduction will be limited to Rs. 30K
So any revision of the previous ITR will not change any stand.
2. In the existing house property, there is no loan taken/pending so question of any rebate over home loan does not arise.

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B K D

B K D (Querist)
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15 October 2021 Thank You ... Got The Point ..

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