Investment declaration for tax exemption on home loan

"I have bought an under construction property in year 2012-13 (feb'12) and taken a home loan against it.
Now possession of this property is in financial year 2014-15 (January 2014)."

You have not quoted the financial years properly so I cannot comment on the interest deduction.

Financial year is the year in which the transactions take place.

Purchase of under construction property in Feb 12 (FY 2011-12)(AY 2012-13)

Possession of this property in Jan 14 (Fy 2013-14) (Ay 2014-15)

You can claim interest on housing loan actually paid from 1/4/13 to 31/3/14 maximum upto Rs 150000/-. This is assuming that you have to stay in rented accomodation due to employment reasons.

I have corrected it now as possession date will be January 2015, kindly provide your input now.

Originally posted by : Madhavi Pandit
	"I have bought an under construction property in year 2012-13 (feb'12) and taken a home loan against it. Now possession of this property is in financial year 2014-15 (January 2014)." You have not quoted the financial years properly so I cannot comment on the interest deduction. Financial year is the year in which the transactions take place. Purchase of under construction property in Feb 12 (FY 2011-12)(AY 2012-13) Possession of this property in Jan 14 (Fy 2013-14) (Ay 2014-15) You can claim interest on housing loan actually paid from 1/4/13 to 31/3/14 maximum upto Rs 150000/-. This is assuming that you have to stay in rented accomodation due to employment reasons.

ACCORDING TO ME,

IN CASE YOU WOULD START LIVING IN YOUR OWN HOUSE FROM 1/4/2015 OR AFTERWARDS THEN YOU SHOULD ADD ALL THE INTEREST WHICH IS EQUAL TO 529504.00 AND DIVIDE BY 5 (PRE CONSTRUCTION PERIOD INTEREST) =105901.00 TO THE MAXIMUM  OF 150000.00.

THUS YOU CAN CLAIM DEDUCTION OF 105901.00 FOR THE FIVE YEARS STARTING FROM A.Y.2016-17(P.Y.-2015-16)

BUT YOU CAN ALSO WAIT FOR OTHERS OPINION

Rs 282261/- is your Housing loan interest payable from 1/4/14 to 31/3/15. You can get max Rs 150000/- as deduction u/s 24 for that in that year, ie, 2014-15 FY.

(1/5 th of pre completion interest also is allowable but the max amount is limited to Rs 150000/-) Additional interest deduction upto Rs 100000/- u/s 80EE will not be available to you as your loan has been sanctioned before 01 April, 2013.

In addition you can also get deduction u/s 80C for the principal amount paid max 100000/-.

This is assuming that you have to stay in rented accomodation due to employment reasons.