24 B

i.) Under second proviso to section 24(b) of the Income tax Act, 1961, a sum of Rs.1,50,000/- is available for deduction as interest paid on the loan availed for the purpose of acquisition / construction of the house property after 1st day of April 1999, provided such construction / acquisition must be completed within 3 years from the date the capital was borrowed. ii.) If the property is acquired / constructed out of he borrowed amount, the interest on such loan for the periods prior to the period in which such property has been acquired or constructed shall be deducted in equal Installments from the year of construction / acquisition with four immediately succeeding years. iii.) The above deduction indicated at (i) and (ii) above will be allowed only when the borrower furnishes a certificate indicating the amount borrowed and interest payable for the acquisition / construction of the property. iv.) The principal re-payment on the housing loan is liable for deduction for individuals and HUF to the extent of Rs. 1,00,000/- under section 80C of the Income tax Act, 1961. In the Case of EMI,Nothing will be change.Just You have to bifurcated Principle Amount and Interest Amount.

If the house is completed, then interest can be claimed u/s 24 and and principal reayment can be claimed u/s 80C.

Kindly note that to claim the interest u/s 24B the construction of the house must be completed on or before 31st-march-2008 and the assessee has obtained Occupation Certificate from the builder. If at that date the house is under construction the assessee can only claim Principle amount. The interest portion can be claimed from next FY ie 2008-09 AY2009-10 in 05 equal instalements.

Sundarajan both of them are right

hope u got ur point

have a nice time

Sec. is 24(b) not 24B

Sec. is 24(b) not 24B