CA Vishal (CA working in industry) (620 Points)
08 February 2010I Want to Know that I my Housing loan is under process in Feb 10 and my 1st Installment due in March 2010. But the house is completed 90% and I will get the possession in May 2010. I just want to Know can I take interest benefit If I pay the stamp duty & registration fees in Mar 2010.
Max Payne
(employed)
(2569 Points)
Replied 08 February 2010
Dear Sir/Madam,
You will have to treat this year's interest as "pre-construction" and claim it equally over 5 years starting next year. From next year, you can claim each years accrued interest as well u/s 24.
80C deduction for pincipal u can claim once the construction is complete.
Regrds
C.Balaji
(Learner)
(1867 Points)
Replied 08 February 2010
Dear Hello,
Interest paid upto March 2010 should be considered as "pre-construction" and it can be claimed equally over 5 years starting from next year when the construction gets complete. Next year, you can claim Pre construction interest as well as interest paid during the year....It is allowed on due basis....
80C deduction for pincipal repayment....only for post construction ....
CAclubindia
