if i take a loan and buy a plot.
then in how many years should i complete the construction to be eligible for home loan deductions
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Home loan for plot and house
Replies (8)
if you complete the construction in 5 year from end of year in which loan was taken
then you are allowed to take deduction u/s 24 of INR 2,00,000 in the year in which construction got completed.
then you are allowed to take deduction u/s 24 of INR 2,00,000 in the year in which construction got completed.
House to be completed within 5 yrs from the end of FY in which loan taken.
After 5 years you get maximum 2 Lakhs deduction ( total of 6th year interest + 20% of accumulated interest for previous 5 years)
After 5 years you get maximum 2 Lakhs deduction ( total of 6th year interest + 20% of accumulated interest for previous 5 years)
1. Interest on the borrowed capital of Rs. 2 lakhs(maximum) lakhs will be allowed as deductions if construction is completed within a period of 5 years from the end of the FY in which the loan was taken.
2. From 6th year onwards maximum amount allowed as deductions will be restricted to Rs. 30,000.
3. Principal repayment will be available as deductions u/s 80C with no conditions except for retention of house property for a period of 5 years from the date of completion of construction.
Please correct me if the above solution has an alternative view.
1. Interest on the borrowed capital of Rs. 2 lakhs(maximum) lakhs will be allowed as deductions if construction is completed within a period of 5 years from the end of the FY in which the loan was taken.
2. From 6th year onwards maximum amount allowed as deductions will be restricted to Rs. 30,000.
3. Principal repayment will be available as deductions u/s 80C with no conditions except for retention of house property for a period of 5 years from the date of completion of construction.
Please correct me if the above solution has an alternative view.
Thanks for all the information
@ Mr Shane
Interest deduction is allowable under section 24(2) . Max limit is 2 lakhs per year. Rest is as per my above post
Interest deduction is allowable under section 24(2) . Max limit is 2 lakhs per year. Rest is as per my above post
Thank you
Loans are granted under Composite loan scheme only if the Applicant is intending to complete the construction within 3 years from the date of plot purchase
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