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Housing Loan interest from 2 Under construction Property

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Nitin

23 Points Posted on 20 July 2023

Hello Expert,

Please let me know if we can claim housing loan interest benefit from 2 Properties but both are under construction.

Please let me know your remarks.

Regards

Nitish

Replies (2)

Quick Summary

You can claim housing loan interest benefits for two under-construction properties, but only after they are completed. The interest paid before completion is claimed in five equal instalments starting from the year of completion. Once finished, you can treat up to two houses as self-occupied, with a combined interest deduction capped at £200,000 annually under the old tax regime. If the properties are let out, there's no cap on interest, but losses are limited.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 20 July 2023

Yes, but only after their completion. The aggregate interest paid for each property will be allowed for deduction in 5 equal installments, separately.

Aashok Kumar Sharma

Finance/Compliance Consultant

75870 Points Posted on 08 November 2026

Interest on two under-construction houses:
• Interest on loans for houses under construction isn't deductible while under construction. Pre-construction interest is claimed in 5 equal instalments from the year construction is completed (Sec 24(b)).
• Once completed: you can treat up to 2 houses as self-occupied (from AY 2020-21), with the combined interest deduction for self-occupied houses capped at Rs 2 lakh per year (old regime). If let out, no cap on interest, but the HP loss set-off against other income is capped at Rs 2 lakh (and the new regime allows no set-off).
• Principal repayment: 80C (within Rs 1.5 lakh total), only after completion.
• Joint loans and ownership: each co-owner claims their share within their own limits.