Sir / madam if pre interest paid is eligible for deduction still under construction the property because I saw online interest before construction property not allowed and one more if it's not eligible
can I cliam processing fee what I paid 34500 still under construction
Home loan processing fee and other charges paid to obtain the loan fall under the category of ‘interest’ and as such, deduction can be claimed on the same.
The deduction can be claimed by deducting the amount under Section 24 of the Act while calculating income from house property.
The income tax law provides for the claim of such interest also, called the pre-construction interest, as a deduction in five equal instalments starting from the year in which the property is acquired or construction is completed, over and above the deduction you are otherwise eligible to claim from your house property income. However, the maximum eligibility remains capped at Rs 2 lakh.
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