I have purchased a residential flat which is unofficially in ready to move condition in a complex comprising of total 6 Blocks, out of which 5 blocks are in ready to move condition and 1 block is under construction. Developer said that the (CC) Completion Certificate yet to be received (around January 2020) as the total project is under construction. Can I claim deduction on interest portion of emi paid on housing loan for this year (FY 2019-20 AY 2020-21).
With possession letter issued by builder and the final completion certificate issued by authority by Jan 2020 (before end of the FY), you will be eligible to claim interest benefit u/s. 24(b) in AY 2020-21.
Thank you sir
can i get benefit on the emi paid before january 2020, i.e. before CC date
Period between when the money was borrowed up to construction of the house is called as “Pre-construction” period. Interest paid during this period is available as deduction in five equal instalments starting from the year in which the property is acquired or construction is completed ( in your case from AY 2020-21). However the principal during pre-construction period, is not eligible for tax deductions.
Thank you so much sir
Shyam Joshi & Associates
Pune
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CMNITY HIRE
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