Home loan tax benefit after possession

1. you can claim whole of intt and principal paid during FY 13-14.

2. no benefit..... 3. i dont remember any such prov. said by you, wait for someone else to reply on this topic..... 4. yes you can claim 100% deduction.

Originally posted by : Tribhuvan Aditya Singh
	2. no benefit..... 3. i dont remember any such prov. said by you, wait for someone else to reply on this topic..... 4. yes you can claim 100% deduction.

Tribhuvan,

Thanks for your reply. For 3B, please let me know if I can claim at least 1/5 of interest paid before possession. I think it is allowed.

Though not sure, if I can claim 50%, may be someone else can help here.

According to the Income-tax Act, 1961, where the property has been acquired or constructed with borrowed capital, the interest payable on such capital for the period prior to the year in which the property has been acquired shall be allowed as deduction in five equal instalments beginning from the year in which the property is acquired. Thus, the interest included in the loan instalment paid by you during the construction period shall be eligible for deduction from the year in which the flat is acquired/construction is completed. The principal amount of the loan repaid till date shall not be available as a deduction under section 80C till the time the construction of the flat gets completed. Once the flat is completed and the possession is handed over to you, you will be eligible to claim deduction for interest paid on the loan under section 24(b) and principal amount of loan under section 80C. The total amount of deduction available under section 80C shall be limited to Rs. 1 lakh. Thus, as of now, you are not eligible for any tax benefit on such loan repayments.