I purchased an under construction house property and took a housing loan on it. After i got its possesion affer one year, i had calculated the pre EMI portion to be deductedin five equal installments. However i sold off the house after two years and paid my housing loan.
I have following queries.
1. Will be eligible to claim interest paid on loan in the year in which house is sold?
2. what will happen to the balance PRE EMI interest? Can I claim deduction for full amount in the year of sale? OR do i claim one fifth portion in the year of sale and the balance remaining lapses.
3. Or i am not eligible to claim any pre emi interest in the year of sale considering that i did not hold the house property at the end of year but held it att any time during the year?
CAclubindia
