Rebate on house loan interest

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nagendra (Querist)
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18 July 2014 dear sir

i took HL in april 2009 (29.04.2009)from SBI for purchase of house from housing board authority. on 29th july 2011 they got registered the sales deed where in i paid 37000 as stamp duty.
House possession they provided in jan 2014. I have not yet rented the home and loan is continuing. my queries are

1. how i will get rebate on the interest part already paid i.e there are two dates one for registry and other for possession
so which will be considered and how the interest will be treated.

2. whether i will be eligible to claim stamp duty under any rebate if so how

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 July 2014 date of possession is the relevant date for income tax purposes

you need to accumulate the interest charged till the year (before the year in which possession was received) and claim deduction for the same in 5 equal instalments starting the year in which possession was received.

stamp duty claim is to be made in the year in which it was paid.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 July 2014 The interest paid up to the date of possession may be claimed equally for next five years(considered as construction period interest) along with the yearly interest payment.

As per section 80 C an Individual and an HUF can claim principal repayment component of a loan along with other eligible items like Life Insurance Premium, NSCs, EPF, ELSS and stamp duty and registration charges etc.

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nagendra

nagendra (Querist)
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20 July 2014 Thanks a lot sirs... now i have one more qury that my CA is saying you cant get rebate on complete interest accumulated before possession as this is applicable if construction has got completed in 3 years . in this case you can get rebate only on Rs 30000...

Builder registered the property in july 2011, however i got possession in Jan 2014 , and loan was taken in April 2009... Kindly suggest

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 July 2014 you need to accumulate the interest from April 2009 to March 2013. The same will be broken into 5 equal installments and be claimed under 24(b) in five equal installments from FY 2013-14.

what your CA is saying is something we cannot vouch for.

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