Rebate on interest paid on housing loan for ay 2014-15

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2014 Whether interest paid on housing loan is eligible for rebate under income tax, if the builder has mention in possession letter that possession of flat is given for the purpose to furniture work.

please guide me.

Nikhil Kaushik

Nikhil Kaushik (Expert)

12 March 2014 depends...what if the occupancy certificate is not available? then it could be argued that the house is not ready yet!

Querist : Anonymous

Querist : Anonymous (Querist)

12 March 2014 Dear Sir,
Thanks a lot.
I am giving further details as under, please give me your expert advice in light of this ground.
In this case builder has not yet get completion certificate from the govt authority hence he is not giving clear possession certificate.

Nikhil Kaushik

Nikhil Kaushik (Expert)

12 March 2014 well in such a case, i dont think u can say that construction is complete.

Querist : Anonymous

Querist : Anonymous (Querist)

12 March 2014 That means rebate for interest on housing loan is not eligible ?

And for claiming interest rebate clear possession letter is must or what.

Querist : Anonymous

Querist : Anonymous (Querist)

12 March 2014 That means rebate for interest on housing loan is not eligible in this case?
And for claiming interest rebate clear possession letter is must or what.

Nikhil Kaushik

Nikhil Kaushik (Expert)

12 March 2014 yes..you need to capitalize this interest and claim the same in 5 equal intalments over next 5 years

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