Pre emi interest on housing loan

This query is : Resolved

Dhinakaran Selwyn (Querist)
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18 April 2014 I am paying an interest of 80000 per month on the housing loan...possession expected a year later....I stay in a rented property paying 35000 per month
how can I claim benefit on tax for the pre emi?

CA Jitender Sharma

CA Jitender Sharma (Expert)
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18 April 2014 You may claim the pre-EMI paid only after the repayment starts. The Pre-EMi can be clubbed with interest paid for the FY in 5 equal parts.
If total PEMI paid is 100000, you may add 20000 to every FY starting with the FY where the repayment has started on Principal.

As of now, you are not eligible for any tax rebate on Pre-EMI.

Rupesh Jain

Rupesh Jain (Expert)
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18 April 2014 INTEREST PRIOR TO POSSESION YEAR WILL CLAIM U/S 24 (b) in equally 5 installment year from next to possession year .

Dhinakaran Selwyn

Dhinakaran Selwyn (Querist)
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19 April 2014 Thanks...if interest before possession works out close to 10 lakhs..how much can I claim benefit from possessiin year

CA Jitender Sharma

CA Jitender Sharma (Expert)
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19 April 2014 if self occupied than max interest can be claim is 1.50 lakh .

if rent out property then no limit.
eg. Calculation of HP Loss

1.Income from Let out House Property:
1. Annual rent received or reveivable
(NIL if self occupied) Rs.
2. Less: Municipal Taxes Paid
during 2013-14 Rs.
3. Net Annual Value (1-2) Rs.
4.
Less: Deductions claimed under Sec. 24
Rs.
a. 30% of Net Annual Value-(3 above) Rs.
b. Housing Loan interest paid
(after date of construction during the year 2013-14) Rs.
c. 1/5th of Pre-construction
HL interest Rs.
d. Total (a + b + c)
5. Income/(loss) from House Property
(3-4d) Rs.

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