How to show loss from under-construction house property

ITR 549 views 2 replies

Saurabh Jain

Others

28 Points Joined July 2015

Hi,

I have home loan on under construction house. After reading this forum I understand that interest component can be shown as loss from property in 5 installments after the possesion of the property.

In FY 14-15, I have paid around 1 Lac as interest, so do I need to show any loss in AY 15-16 ITR or not? I filled this loss in the HP schedule, but ITR formula automatically deducts this amount as current year loss - which is not correct in my case.

Do I need to show that I have paid interest in FY 14-15 for which I will claim in AY 18-19 (assuming possesion in FY 17-18)?

Regards,

Saurabh

Replies (2)

Kiran. S

CTO

745 Points Joined August 2015

After construction period is over you need to claim it .When you file your return in AY 18-19 you must show interest component of main EMI plus 1/5 th of Total Pre-EMI interest during construction period of 2014 to 2017/2018 [as the case may be]. I hope I am corrrect on this . Experts please help him and enlighten me further on this.

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

Pre-construction period is the period commencing on the date of borrowing and ending on

March 31 immediately prior to the date of completion of construction/date of acquisition OR
Date of repayment of loan, whichever is earlier

If the house is still under construction or if the loan is still not repaid fully, you will have to wait for one of the above after which you can claim the pre-construction interest in 5 instalments.