Loss from house property and deduction limit of 30,000

" I understand that there is a clause in Income Tax where if under construction property is not completed within 3 years (from the end of the financial year in which loan was taken) then one can claim maximum INR 30,000 under 'Loss From House Property'."

The period has beed extended to five years by finance act, 2016. (by Act No. 28 of 2016 (w.e.f. 1-4-2017).

As per amendment in Finance bill 2016 : ' An assessee can avail tax benefit of interest over home loan (for self occupied property) if the acquisition or construction is completed within five years from the end of the financial year in which capital was borrowed instead of three years earlier.

"If construction is completed within five years from the end of the financial year in which the money was borrowed, you can claim interest up to Rs 2 lakhs. However, in case the delay exceeds five years, your entitlement gets curtailed to Rs 30,000 in a year."

Thank you very much for your quick response. Since this amendamant is in Finance bill 2016, it is applicable to home loan taken prior to that (which is FY 2014-15 in my case) ?

Actually.......... when you claim deduction u/s. 24(b)......... the loan should not be more then 5 years old (to completion).....  while the deduction is available only after completion of the property!!!

Deductions from income from house property.

24. Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely:—

(a) a sum equal to thirty per cent of the annual value;

(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees :

Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within [five] years from the end of the financial year in which capital was borrowed, the amount of deduction under this clause shall not exceed two lakh rupees.

Explanation.—Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years:

Provided also that no deduction shall be made under the second proviso unless the assessee furnishes a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.

Explanation.—For the purposes of this proviso, the expression "new loan" means the whole or any part of a loan taken by the assessee subsequent to the capital borrowed, for the purpose of repayment of such capital.