Here is a bit of background for flat purchase.
Registry happened on 24 June 19 for an under construction flat purchase.
SBI HL Processed on June 19 (1st EMI started from July 19) and partial disbursement was done to builder
Construction was finished by Sep 2020.
Occupancy certificate issued to builder by municipal corporation on 09 Oct 2020 (it indicates the building work is done as per plan)
So the buyer moved into the flat in Oct 2020 with approval from the builder. (Before moving, buyer paid property tax for flat for year 2020-21 at MC office)
SBI HL final disbursement happened on 19 May 21 and final amount was paid to builder by bank (there was bit of delay from builder side for claiming final disbursement from bank)
The sale deed happened in June 2021 and the bank collected the original copy of the same. (again... sale deed delay was from builder side)
Questions -
1. Can a buyer claim full home loan interest paid during April 20 to Mar 21 as deduction (under section 24b) in FY 2020-21 return? Or it has to be 1/5th total interest? Or it can only be claimed since FY 21-22?
2. As we know - full interest can be claimed for an occupied/ready flat. Which should be the correct time for marking a flat as occupied in this case. Time when buyer paid property tax & moved in or sale deed date? Which one IT considers as valid time for this calculation?
3. Can the home loan principal paid be claimed under section 80C for FY 20-21 in full? (as flat was under construction till Sep 2020)
CAclubindia
