Claiming Pre Possession Home Loan Interest

Pre-possession interest must be aggregated and claimed in 5 equal annual installments starting from the financial year of possession (FY 2024-25).

Deduction ownership requires you to be both a co-owner and a co-borrower. You can only claim interest in proportion to your legal ownership share in the property, even if you are paying the full monthly EMI. No house property interest deduction is allowed under the New Tax Regime for self-occupied properties.

Yes, you can claim the pre-possession (pre-construction) home loan interest, but only once you have received possession of the property or have completed construction. Under Section 24(b), the interest paid prior to the possession date or the completion of construction of the property will be compounded and could be claimed in 5 equal annual installments starting from the Financial year in which you get the possession or construction is completed. The current interest paid would also be claimable in that Financial year to the extent allowed within the limits for a self-occupied property. If you could share the loan sanction date, the possession date, the total pre-construction interest paid, and whether it is a self-occupied property or let-out property, other members can help with the exact deduction.

PRE-POSSESSION HOME LOAN INTEREST - SECTION 24(b) FIVE-YEAR INSTALLMENT RULE

Pre-possession interest (paid during the under-construction period before you take possession) is deductible under Section 24(b) but NOT in the year it was paid. Here is how it works:

HOW TO CLAIM:

1. Add up the TOTAL interest paid from the date of loan disbursement until March 31 of the year immediately preceding the year of possession (the pre-construction period).
2. This total is deductible in 5 EQUAL installments starting from the year of possession.
3. Claim 1/5th of the accumulated total each year for 5 consecutive years.

EXAMPLE: You took possession in FY 2025-26. Pre-construction interest totals Rs 5 lakh. Deductible each year (FY 2025-26 to FY 2029-30): Rs 1 lakh per year.

OVERALL CEILING UNDER SECTION 24(b): For self-occupied property, the combined annual deduction limit under Section 24(b) is Rs 2 lakh. This Rs 2 lakh cap includes BOTH the current year interest AND the 1/5th pre-construction installment.

CRITICAL - REGIME RESTRICTION: This deduction is available ONLY under the old tax regime. If you have opted for the new tax regime under Section 115BAC for self-occupied property, Section 24(b) deduction is NOT allowed. For let-out property, Section 24(b) is available under both regimes.

For complete pre-construction period interest calculation, how to track the total, and what to report in Schedule HP of ITR: [pre-construction period home loan interest deduction Section 24b India](https://taxgarden.in/blog/pre-construction-period-home-loan-interest-deduction-section-24b-india)

In sale deed the property is in my mother,father and my name.Hence 3 people owns it.

I took loan in November 2022 but took posession in Novemeber 2024.
Now I am not staying there and my father is taking rent on that property.
I am paying the EMI every month.
Also I have not availed interest or used section 24b as I was filing my ITR under new regime since last 3 years and i was not aware of these things.

Now please help me in this scenario can i claim full interest in this financial year(This Year's interest + 1/5 of the interest paid in pre posession period)?

In sale deed the property is in my mother,father and my name.Hence 3 people owns it.

I took loan in November 2022 but took posession in Novemeber 2024.
Now I am not staying there and my father is taking rent on that property.
I am paying the EMI every month.
Also I have not availed interest or used section 24b as I was filing my ITR under new regime since last 3 years and i was not aware of these things.

Now please help me in this scenario can i claim full interest in this financial year if i choose old regime.(This Year's interest + 1/5 of the interest paid in pre posession period)?

I am a salaried professional.

In sale deed the property is in my mother,father and my name.Hence 3 people owns it.

I took loan in November 2022 but took posession in Novemeber 2024.
Now I am not staying there and my father is taking rent on that property.
I am paying the EMI every month.
Also I have not availed interest or used section 24b as I was filing my ITR under new regime since last 3 years and i was not aware of these things.

Now please help me in this scenario can i claim full interest in this financial year if i choose old regime.(This Year's interest + 1/5 of the interest paid in pre posession period)?

I am a salaried professional.