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Query: claiming tax benefit on home loan's interest

Tax queries 288 views 2 replies

rahul

job

43 Points Posted on 07 October 2015

Hi,

I have a query..

i took a home loan in 2011 dec, i havenot got the possession of flat uptill now Oct 2015, therefore, i was not able to take the tax benefit.

Now, i see that the possession of flat could be done in Dec 2015, however, i have crossed three finacial years to take tax benefit (some 80EE clause, not sure exactly).

So, what can i do now, to take the tax benefit??

1) should i refinace my loan? will this be beneficial..as i have already paid a lot of interest for 3 years in the current bank.

2) or there is any other way?

Thanks,

Rahul

Replies (2)

CMA Poornima Madhava

CMA

13117 Points Posted on 07 October 2015

The restriction of 3 years for completion of construction/purchase is applicable in case the property is going to be self occupied. In case the property will be let out, then no such restriction, in which case, you can claim deduction u/s 24 for the interest payable for the current year as well as for the preconstruction period.

rahul

job

43 Points Posted on 07 October 2015

Thanks for the reply & clearing the doubts..this means, being with the same bank i can claim the tax benefit on interest if the property is let out. :)