Housing loan interest

Tax planning 562 views 2 replies

Govarthan

Manager F & A

28 Points Joined January 2008

HI,

I purchased a New flat it is my first flat (I entered into a purchase agreement dated on 25.03.2012) my flat cost around Rs.24,00,000.00

In that I taken a housing loan (my first Housing Loan) in LIC HF they Sanctioned Amount for Rs.18,00,000 Interest @ 10.70 % on 17 May 2012, First Disbursement Date 31 May 2012.

Out of Rs 18 Lac they realised 1,436,000.00 as on date 26.04.2013 still Rs. 3,64,000 is pending (Final payment is on process soon they will realise )

My flat is completed 90 % as on date (Waiting for EB Connection and small works are pending) .Within one or two month my flat will completed fully

My Doubt is when I shall start claiming my housing loan interest and principle

And the same time what is my eligible housing loan interest and principle in my case

Can you any one advise me ……

I want to submit my investment proof to my company base on your valuable advice I plan my investment accordingly

Replies (2)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

As you will be getting the possession of the property during the current year 2013-14, so you can start claiming the deduction towards interest paid till March2013(pre-construction interest) in 5 equal installments. The first installment would be claimed from the current F.Y. 2013-14 and also the interest paid for the current F.Y. 2013-14 can also be claimed from the current F.Y.

however the overall limit for the pre-construction interest and the interest paid for the current year will be 1.50lacs only.

so you can get the amortization schedule from LIC HF for the current year and also ask them to provide the certificate for pre-construction interest. This amount of interest paid (pre & post) can be declared in your investments made.

However there is no restriction for claiming the principal paid and can take deduction u/s 80C upto Rs 1lacs even if the property is under construction or possession is not being given. So the principal paid for F.Y. 2012-13 can be claimed in A.Y. 2013-14 while filing the return of income in July 2013.