Interest Paid for Purcahse of Land

Dear Nitin,

Tax benefits can be claimed only from the year in which u have got the possesion of HOUSE.........

a) Interest upto that year will be allowed in 5 equal annual installments

b) Interest of current year(begning from the year of completion of construction/possesssion of House) will be allowed

c) a + b shall not exceed Rs. 1.50 Lacs in case House is self occupied

d) Repayment of Principal will be allowed u/s 80 C upto max of Rs. 1 Lac (only begning from the year of completion of construction/posession of House)

e) Both HRA & above benefits can be claimed simuntaneously...........

Thanks Aamir for your prompt reply,

Need some further clarifications,

1) Is there any time limit for claiming this benefit ? Like do I need to construct the House within three or five year etc.?

2) In your reply you said a+b should not be more than 1.5 lakhs. Does it mean that the total interest I can claim is 1.5 Lakhs max. irrespective of the number of years it took to construct the house? or is it 1.5 lakhs per year?

Dear Nitin,

Yes u r rite construction should be completed with in 3 years from the date of Loan.

If construction is not completed within 3 years then maximum amount of Interest on Self occupied house would be restricted to Rs. 30,000/year only.

If u give ur house on rent then there is no limit to claim deduction of interet.

Thanks once again Aamir,

Is there any other Clause in which I can claim any benefit of the interest I am paying?