Query on pre construction interest

" I have read that for this, the construction should complete within 3 years from the end of the financial year in which the loan was taken. Is that changed to 5 years now? "

Yes, for Self Occupied Property....... the deduction u/s. 24b will be upto 2 lakhs, provided the construction of the property is completed within 5 years from the end of the FY in which the loan was borrowed. Otherwise it will gets restricted to 30K PA.

"Secondly, my loan sanction date was 28-March-2015. Loan disbursement date was 20-April-2015. So which of the 2 dates would be used for this purpose?"

Loan sanctioned date.
 

Yes you can claim deduction u/S 24(b) of the IT Act, 1956.
construction of house should be completed in five years. This amendment will take effectively from A. Y. 2017_18
Secondly, you have to use the date of borrow I. E. 20.04.2015
If this house is self occupied then you can claim upto rs 2 lack only This limit includes current year intt and pre- construction intt.
But if this house property is let out then you can claim full amount of intt paid or payable for current year i. e. F. Y. 2018-19 and also claim 1/5 amount of intt paid or payable for period 20.04.2015 to 31.03.2018.

However The deduction for pre construction interest is allowed in 5 equal installments starting from the year in which the house is purchased or the construction is completed.

Great..thank you.

 So it means

• 1/5 of total interest paid till 31/3/2018 +
• Any interest component that I pay this financial year 2018-19

Correct?

	So it means 1/5 of total interest paid till 31/3/2018 + Any interest component that I pay this financial year 2018-19 Correct?

 

Yes, correct.... For AY 2019-20..... subject to 2 lakhs for SOP.

& similarly 1/5th for next 4 years added  to interest paid for that particular year.

 

Yes you are correct but property should be let out.