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Home loan interest tax exemption

17 June 2019

My house property loan is taken on march 2017 and EMI is started from March 2017.
House is completed and CC is received on 18th January 2019.
House is registered on 15th June 2019

My LOHP claim for 2018-19 FY, rejected though I had provided all the interest certificates and completion certificates.

As per law, interest paid before the financial year in which completion certificate is received should be considered as "pre construction Interest paid".

So in My case, can I claim the home lone interest paid in FY-2018-19 at the time of ITR filling or it would be considered under the "pre construction Interest paid" in financial year 2019-2020.?

Kindly let me know the same.

-Thanks in advance

Saptarshi

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4 Replies

Om Goyal (445 Points)
Replied 17 June 2019

Pl.point out who has rejected ur claim. pl give complete inf while raising Q .what do u mean by LOHP.
u are eligible for H loan int Claim for Fy 18-19 but yr HP loss will be carried forward beyond 2 lakh. int. to At 20-21 & if it it on rent ur int. will be adjstd against Rent .
All this is
Provided prop. is in ur name. u have not pointed out the reason raised for rejection & by whom. it may be ur employer from u should have inquired about reasons

Saptarshi Paul (5 Points)
Replied 20 June 2019

Hello Mr Goyal,

Thanks a lot for your valuable advise.

LOHP is "Loss On House Property"

My LOHP claim was rejected by employer as I couldn't provide any proof of ownership for my property by March 2019.

I had provided the agreement , completion certificate along with loan interest documents but it was not enough for the accounts department to approve.

I had March 2019 electricity bill but it was received in April 2019. Hence couldn't use it either.

I have paid Rs. 174000 as interest in FY 2018-2019.

What I understood from your comment is, I can claim this Rs. 174000 for tax exemption while filling ITR in FY2018-19.

Thank You

Saptarshi

Suresh Thiyagarajan (Student) (3986 Points)
Replied 20 June 2019

1. In your case rejection by your employer will not make much difference, you can claim your pre-construction interest paid up to 31st March 2018 at the time of filing your IT return in 5 equal installments.
2. And interest paid during the year can be claimed as deduction u/s 24(b) as interest on borrowed capital (max of Rs. 2 lakhs) under the head "Income from House property"
Please correct me if the above solution has an alternative view.