HOUSING LOAN PRE EMI INTEREST

368 views 8 replies

mayuri

Tax Consultant

270 Points Joined October 2015

Hello everyone,

One of the client has paid 4 months Pre Emi Interest for the last FY 2022-23 (Asst year: 2023-24), and he got Occupancy Letter in the month of March.

As per bank certificate:

PRINCIPAL COMPONENT Rs. 8,441.00

INTEREST COMPONENT Rs. 49,833.00

PRE-EMI INTEREST Rs. 1,23,989.00

While filing return, which interest amount to be considered?

Replies (8)

Manish

1201 Points Joined June 2021

Both interest components will be considered.

The entire interest component can be claimed as deduction. with respect to prior period interest, only 1/5th of 123989 has to be claimed as deduction and the rest of the amount has to be claimed in equal proportions in 4 assessment years

RAJA P M

"Do the Right Thing...!!!"

128111 Points Joined January 2015

Interest: Only can be claim for the interest amount of Rs 49833/-

mayuri

Tax Consultant

270 Points Joined October 2015

He got occupancy in March, can't the entire interest can be claimed

rama krishnan

12244 Points Joined May 2017

Only 1/5th of the prior period interest can be claimed for an assessment year

Manish

1201 Points Joined June 2021

Originally posted by : mayuri
	He got occupancy in March, can't the entire interest can be claimed

Yes, Mayuri. Both interest allowed.

RAJA P M

"Do the Right Thing...!!!"

128111 Points Joined January 2015

No, Both interest not available for deduction.
Only claim for the FY portion on the same years...

Sahil Dodeja

4 Points Joined July 2024

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