It rebate on housing loan

Tax queries 179 views 4 replies

sanshit

mgr

25 Points Joined May 2010

I had purchased flat under construction in 2018. I have been given possession of flat on 15 Jan, 2020 by the builder. For purchase of flat i took loan from HDFC and following interest certificates are issued

FY 2018-19 Pre EMI Interest Rs 183163
Fy 2019-20 Principal 21940.00
Interest 58254.00 Pre EMI Interest Rs 297003.00 Total Interest 355257.00

I have taken possession on 15 Jan, 2020, and I started my EMI after taking possession.

what interest rebate i am allowed for loan taken for house in the current year.

I need to clarify as there is difference is opinion of me and my employer.

Replies (4)

Roshni

Studwnt

1141 Points Joined February 2016

18-19 interest will be allowed over 5 yrs period. plus current year you can claim completely

anirudh

student

178 Points Joined October 2016

A) Fy 2018 -2019 interest will be allowed as deduction over 5 years and
b) current year interest will be allowed fully.
But if house property is self occupied then the amount of deduction of a + b shall not exceed 200000/-.

sanshit

mgr

25 Points Joined May 2010

What is treatment of EMI Interest vs Pre EMI interest for the purpose of tax deduction for the year in which completion/possession of property is taken.

I think in the year in which possession is taken is fully exempt irrespective of the fact whether it is pre EMI interest or EMI interest ie whether I Chose pre EMI or full EMI, there is no change for tax deduction. Please clarify.

anirudh

student

178 Points Joined October 2016

Any interest paid till 31.3. preceding the date on which possession is taken will be allowed in 5 years.

Current year interest will be allowed fully.

I hope you understand.