Pre-construction period annual interest limit under sec-24
This query is : Resolved
23 July 2017
I had taken a Home Loan in Dec '2013 for buying a Flat on CLP Plan. I have been given possession of the Flat in March '2017.
As per Section-24, Interest that has been paid before the completion of construction should be aggregated and the whole aggregated amount shall be allowed as tax deduction in 5 equal installments for 5 successive Financial Years starting from the year in which the construction has been completed.
In last 2 years, the Interest on my Home Loan was more than Rs. 2 lacs per annum. Is there any annual limit on the Pre-Contruction Period Interest on Home Loans for claiming deduction under Section-24? Or I have to just add the full Interests paid by me in the last 4 Financial Years and divide the total in 5 equal instalments for getting Tax deduction.
As per Section-24, Interest that has been paid before the completion of construction should be aggregated and the whole aggregated amount shall be allowed as tax deduction in 5 equal installments for 5 successive Financial Years starting from the year in which the construction has been completed.
In last 2 years, the Interest on my Home Loan was more than Rs. 2 lacs per annum. Is there any annual limit on the Pre-Contruction Period Interest on Home Loans for claiming deduction under Section-24? Or I have to just add the full Interests paid by me in the last 4 Financial Years and divide the total in 5 equal instalments for getting Tax deduction.
CA Rashmi Gandhi
(Expert)
23 July 2017
Max ded of Rs.200000/- can be claimed in a year.
18 October 2021
Excess loss form IFHP is allowed to be carried forward till next 8 years.
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