Home construction loan

Tax queries 125 views 1 replies

Hi


I've taken a construction loan (10L) in oct 2016. Further topped it up with (5L) in May 2017. Settled it (5L loan) in Jun 2018 (though paid all EMIs in between). Construction was completed in Oct 2017. So now I've only 1 active loan. I checked the statements of both loan accounts. Here's snapshot.


  10 L 5 L
2016-17 PEMI Interest (x1 amount)  
2017-18 PEMI Interest (x2 amount) PEMI Interest (x3 amount)
2017-18 EMI Interest (x4 amount) EMI Interest (x5 amount)

I've not claimed anything in last yr return (2016-17) as construction was not completed. and currently, I'm not living in this premises (empty as of now)


I've done research and found that I can claim (PEMI/5) for next 5 yrs and complete EMI interest (max 2 L) this year.

This comes out


x1/5 + (x2 +x3)/5 + min(2Lakhs, x4+x5)


Is this understanding correct? and where to write this in ITR 1 form?

 

thanks

 

Replies (1)

HOUSING LOAN PRINCIPAL AMOUNT REPAYMENT DEDUCTION YOU CAN TAKE OF UPTO 1.5LACS U/S 80C.

PRE CONSTRUCTION INTEREST DEDUCTION U/S 24(B) FOR 5 YEARS YOU MAY TAKE ALONG WITH NORMAL INTEREST PAYMENT FROM THE END OF THE MONTH OF CONSTRUCTION UNDER SAME HEAD.

SINCE ITS NOT SELF OCCUPIED HOUSE IT CAN BE DEEMED TO BE LET OUT PROPERTY AND INTEREST OF FULL AMOUNT YOU CAN CLAIM.

THERE IS NO LIMIT OF INTEREST DEDUCTION IF PROPERTY IS NOT SOP.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register