Hello All,
I'm a part of compensation team with a real estate company in Pune. I've a query with regads to Income Tax benefit on Interest on home loan. One of colleuage has recently got the possession (property at Bangalore) of his house against which he is claiming the full interest as deduction. The facts of the case is as follows:
1. He got the housing loan in July 2013 i.e. FY 2013-14 for under construction property
2. He got the possession of his house in Aug. 2015 i.e FY 2015-16
3. He rented out his house in Oct. 2015 i.e FY 2015-16 for 6 months
Now in his tax declaration is he claiming the following exemption for Interest on home loan:
1. Interest of Rs. 410280 for FY 2015-16 (this is the interest as per the provsional certificate from his lender for FY 2015-16)
2. Rs. 32240 as interest on pre construction phase (Total Rs. 161200 for FY 2014 and 2015 which is divided by 5)
My question is
A) Can he take both the above interest benefit even when he has rented his property only for 6 months of the current FY?
B) Please let me know the limit of Rs. 200000 of interest exepmtion is inclusive of interest on pre construction phase or pre constuction phase interest is over and above Rs. 200000 of exemption?
Please help me with your expert advice on the issue.
Thanks in advace
Mayank Kumar
+91-7506372002
CAclubindia
