Under construction house: Interest expense

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If you've paid interest on a home loan for a property currently under construction, you cannot claim this expense on your current income tax return. Instead, keep your interest certificate safe. You'll be able to claim the total interest paid during the pre-construction period as a deduction once the property is completed.

Harshal Sonawane

Harshal Sonawane (Querist)

05 October 2021 I have an under construction house property for which I have availed home loan. I paid 1 lac interest in FY21. Construction of the property will be completed by FY23. While filing income tax return for FY21, where to mention interest expense on under construction house so that I can avail benefit post completion of property.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

05 October 2021 No question of reporting the same in current ITR.
Just keep the interest certificate issued by bank for future reference.
You can avail the deduction of pre-construction period interest, based on these certificates.

Harshal Sonawane

Harshal Sonawane (Querist)

05 October 2021 Thank you so much sir for prompt response 🙏

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

05 October 2021 Most Welcome ....

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