home loan expert : Need help/Clarification

Tax queries 1243 views 2 replies

VIJPS

manager

95 Points Joined December 2010

Dear Expert

I need clerifcation from home loan expert that whether any provision for tax benefit on house loan Pre-emi interest for my case who’s builder giving flat possession after 3 financial year.

My case is like ,

I taken home loan from HDFC back in FEB-2007. Till now I am paying pre-emi to HDFC bank and not yet receive flat possession from builder. The builder told that he will give possession in next year July 2011.

So I have approx 2.5 lakh as pre-emi interest in following finance year

FY 2007-2008 : PRE-EMI

FY 2008-2009 : PRE-EMI

FY 2009-2010 : PRE-EMI

FY 2010-2011 : PRE-EMI

FY 2011-2012 : will get possession in flat

will I get any tax rebate on 2.5 lakh pre-emi interest which I paid in last 4 finance year 2007-11 under section 24C next year ( F.Y. 2011-12 ) onward like other are getting to divide all pre-emi in 5 equal installment ?

Also how will be hoam loan will be treat next financial year onward.

What is criteria in income take who house home possession take more then 3 finance year ?

I need expert advice . I am not getting very much clear answer for my case ?

Thanks in advance

Vikas kakkar

9620244420

Replies (2)

Dhawal Mohnot

Practicing

449 Points Joined October 2009

i am no expert. But i guess i am sure of my answer.

You must have been filing your returns and under the head income from house property you must be claiming the interest as deduction. Since you do not have any income it would total to house property loss (for a maximum of Rs.150,000) this loss can be adjusted against your income from business or other sources but not from salary.

As a result of the above u r setting of the loss from house property with any of your other income. try relating this suggestion with other suggestions recd so far by you. In case of anything in contrary please put forth your comment.

CA SHANKY KANSAL

Doing Job

35 Points Joined October 2009

Hi Vikas,

Before you go through my opinion i just want to inform you that i am not an expert,but i advice you to go through my opinion

As per section 24(b) house is need to be constructed or acquired within 3 years from end of financial year in which capital is borrowed.Generally in real estate property ownership is passed when agreement to sell is executed.Therefore if Agreement to sell is entered by you & your developer than you have acquired the property at that date.Therefore merely not getting possession of house is not relevant for disallowing deduction u/s 24(b).

Therefore you will be entitle to deduction of pre-construction interest which is to be computed till 31st march 2011.And next year interest will given as deduction u/s 24(b) subject to condition specified therein.