Claim tax benefits on under construction property

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Hi Team ,

I have purchased a property in pune and was applying for a home loan in SBI .  Recently I got a call from another home loan provider which gave me attractive benefits compare to SBI. The one benefit which attracted me more was the tax benefit on the under construction property. According to him if the bank is issuing a tax certificate with the principal and the Interest breakdown then one can claim for the under construction property as well. I am not sure whether this is even true or not because I have read article that I can claim tax benefit only after the possession.
Could you please let me know if we can claim the tax on under construction property or not.

Thanks
Debasis Nanda

Replies (2)

No. Only interest accrued during construction period is exempted in five equal installments from the year of completion.

  • Section 80C:

Under Section 80C of the Income Tax Act, one can avail tax benefits on principal amount of the home loan. Maximum tax deduction allowed is Rs.1,50,000. 

Tax benefit for repayment of principal loan amount is allowed after the construction of the house is complete.

  • Section 24:

Tax benefit is available on the interest that is paid towards the home loan under Section 24. The tax is deducted on an accrual basis. 

Fore more Read https://www.bankbazaar.com/tax/how-to-claim-tax-benefits-on-home-loans.H T M L

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