Pre-construction period interest
This query is : Resolved
Quick Summary
04 April 2023
Hello
My house is ready for delivery. I have taken a home loan for the construction. The apartment complex took 7-8 years to reach completion stage, primarily due to COVID related lockdowns. I have been paying pre-construction interest all these years.
Can I claim this pre-construction period interest in total over the next 5 years? Or am I only eligible to claim Rs. 30K per year for 5 years.
The delay is purely force majeure.
Please help..
My house is ready for delivery. I have taken a home loan for the construction. The apartment complex took 7-8 years to reach completion stage, primarily due to COVID related lockdowns. I have been paying pre-construction interest all these years.
Can I claim this pre-construction period interest in total over the next 5 years? Or am I only eligible to claim Rs. 30K per year for 5 years.
The delay is purely force majeure.
Please help..
05 April 2023
You can claim the preconstruction interest over a period of 5 years.
The total interest claim in a year can't exceed 2 lacs including current year interest.
The total interest claim in a year can't exceed 2 lacs including current year interest.
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05 April 2023
Deduction for interest on borrowed capital shall be limited to Rs. 30,000 in following circumstances:
a) If capital is borrowed before 01-04-1999 for the purpose of purchase or construction of a house property;
b) If capital is borrowed on or after 01-04-1999 for the purpose of re-construction, repairs or renewals of a house property;
c) If capital is borrowed on or after 01-04-1999 but construction of house property is not completed within five years from end of the previous year in which capital was borrowed.
a) If capital is borrowed before 01-04-1999 for the purpose of purchase or construction of a house property;
b) If capital is borrowed on or after 01-04-1999 for the purpose of re-construction, repairs or renewals of a house property;
c) If capital is borrowed on or after 01-04-1999 but construction of house property is not completed within five years from end of the previous year in which capital was borrowed.
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05 April 2023
Just an add on question. If there is a limitation of 2L per annum, how do I claim the total preconstruction interest of 15L? Can I claim beyond 5 years?
05 April 2023
You can't claim beyond 5 years.
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