24 July 2022
MY CLIENT PURCHASED A FLAT IN FY 2020-21 BUT THE POSSESION WAS TAKEN IN AUGUST 2021. BUT NO REGISTRY HAS BEEN MADE TILL DATE. CAN I TAKE ONE FIFTH OF PRE EMI INTEREST IN FY 2021-22 AS THE POSSESION HAS BEEN TAKEN AND REST 100% OF INTEREST PAID HLOAN AFTER DATE OF POSSESION.
07 August 2022
100% Deduction of interest can be taken from trom April 2021 itself. As per Income tax law, the pre-construction interest deduction is allowed for interest payments made from the date of borrowing till March 31st before the financial year in which the construction is completed. So in your case interest paid till 31st March 21 has to be considered as pre emi and From April 2021, the interest paid will bw considered as Normal EMI .
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