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Emi subvention on housing loan

Tax queries 664 views 1 replies

Nitin Maheshwari

Asstt. Manager

24 Points Posted on 09 June 2014

Hi All,

I have just planned to buy a Home in which No EMI would be paid by me till possesstion. interst on housing loan taken by me will be paid by builder in my bank account and after that bank will debit the same amount as interst on home loan.

what would be the treatment of the amount credited in my bank account from builder account. will it be treated as income. If yes, can i take the benifit of the interest paid to bank against the said income.

Please help me on this. Revert required urgently.

Regards

Nitin Maheshwari

Replies (1)

Guest

The amount paid to you by the builder will be taxed as income from other sources.

If the Loan is in your name, then you are liable to pay the interest whether or not the builder deposits money in your account. So, you can claim the deduction of interest on housing loan u/s 24(b) once you get possession. The Interest paid till you get possession will be allowed in 5 equal instalments on getting possession max 1.5lakh per year.