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Interest benefit on housing loan

CA rahul (BCOM(H) ACA) (725 Points)

20 February 2016

It is mandatory to submit the construction completion certificate to the employer for cliaming the interest benefit under section 24(b) on interest paid on the housing loan.

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4 Replies

Ajit Hegde (CA - Final) (1367 Points)
Replied 20 February 2016

Its not mandatory. Generally people provide provisional interest certificate obtained from the bank. That should suffice

CA Chandan Sharma (Chartered Accountant) (283 Points)
Replied 20 February 2016

Hi,

Yes agreed with Ajit, there is no such requirement. Repayment schedule or interest certificate obtained from Bank is sufficient and can be submitted with the employer.

But please be noted deduction for interest expence before construction/acquisition is allowed after construction/acquisition in 5 years instalments under Income Tax. In that case in order to compute the same the employer may ask for the construction completion certificate but it’s not mandatory as said by my friend Ajit.

CA rahul (BCOM(H) ACA) (725 Points)
Replied 20 February 2016

Thanks for sharing the view. the fact of the case is interest pertain to f.Y 2015-16 and constuction of the property is also competed in f.Y 2015-16.so there is no interest component for the period prior to the financial year in which constuction is completed.