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Home loan pre-emi 1/5th deduction if property is sold

Tax queries 198 views 1 replies

Hello,

Can I deduct pre-EMI (1/5th interest) of home loan (pre-constuction period interest) even if I have sold the property in 2nd year?

Year t-4 - Pre-construction period. Not deducted any home loan interest in ITR.
Year 1   - Got possession. So deducted 1/5th pre-emi interest and regular EMI interest in schedule for "deemed let out property"
Year 2   - Sold the property.

  1. Can we still claim 1/5th interest for years 2-5?  and interest for year 2 (or)
  2. Deduct the entire remaining pre-EMI interest and year 2 interest as part of expenses while calculating the profit/loss on sale of the property?

Thanks in advance,
Sri

Replies (1)

bumping up, in case someone is aware!


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