3 years back me and my brother took a composite housing loan (land purchase + construction) from IDBI bank. The condition from Bank was to start the within 6 months. But some legal litigation cropped up and we could not start construction. The loan got converted to mortgage loan after 7th or 8th month. The court case continued for around 3 years and we paid the interest to IDBI bank.
Q: Can I claim any tax benefit under IT law for the interest paid for any period?
Finally we have done out of court settlement and all documents are signed by the other party. After that we shifted the loan to HDFC bank. House construction is going on now we will be shifting by July-2013. We paid few pre-EMIs and starting EMI from this month i.e. May-2013.
Q: When can I claim the tax benefit under IT law for pre-EMI and EMI period? Is it only after shifting to the house?
Thank you in advance.
Regards,
Malay
CAclubindia
