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Home Loan Interest Claim Before and After Possession

06 February 2024

How can i claim my Home Loan Interest Deduction paid previously taking the Possession of the House if my current loan interest amount is already exceeding Rs 200,000.

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8 Replies

Saravanan nagaraj (463 Points)
Replied 07 February 2024

You should have availed this loan after 1999, completed your construction before 5yrs. Then you can avail this Pre-Interest.

After completion your construction of your property. 1/5 part of every financial year. Exceed limit 2 lakhs.

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Vinay Jaindani (188 Points)
Replied 07 February 2024

but while filing the form as self occupied property the portal is not allowing me to claim deduction more than 200,000 so if my 1/5 of previous interest amount is 60,000 and my current AY interest amount is 190,000 I am able to claim only 2,00,000 only.

Khush Trivedi (3946 Points)
Replied 07 February 2024

In which year you took the loan nd on which date (MM-YY) you have possessed the House ????

Vinay Jaindani (188 Points)
Replied 07 February 2024

I took loan in 2020 and paid and interest of Rs 240,000 through out the year and i had took possession of the home in May 2023 and had paid interest approx 190,000 from may to march.

Saravanan nagaraj (463 Points)
Replied 07 February 2024

Please divided your total Pre-Interest by 5. If you are total Pre-Interest Rs.2,40,000 / 5 = Rs.48,000/- is eligible to claim Pre-Interest period.

In case, you paid 10,00,000/- interest in construction period / 5 = Rs.2,00,000/- each year. But, you have total Pre-Interest Rs.2,40,000 know then eligibility is Rs.48,000/-

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Vinay Jaindani (188 Points)
Replied 07 February 2024

If i had paid 1,000,000 in my pre interest then I am eligible to claim 200,000 and my current interest is also 200,000 then how can i claim both of them as the maximum cap for SOP is 200,000.

Saravanan nagaraj (463 Points)
Replied 07 February 2024

Just divide into 5 you will get Rs.40,000 right that is your eligibility Pre-Interest claim under sec 24. Use your principle and interest for further deduction. Please don't declare income tax return yourself. Consultant with Tax Accountant or Chartered accountant.