Restrictions in income tax rebate for pre-emi

. Interest upto Rs.1,50,000 is deductible if the following conditions are satisfied:
• capital is borrowed on or after April 1, 1999 for acquiring or constructing a property;
• the acquisition/construction should be completed within 3 years from the end of the financial  year  in which capital was borrowed

The interest paid/ payable before the final completion of construction or acquisition of the property will be aggregated and allowed for five successive financial years starting with the year in which the acquisition or construction is completed. This deduction is not allowed if the loan is utilized for repairs, renewal or reconstruction.