Sec 24 interest -construction completion & limit

Intrest on a resediential property is Rs.4,25,000,(Single property but joint loan in the name of husband & wife)

Case 1

Construction completed within 3 years,property self occupied-Then Limit is Rs.2 lacs for property can husband & wife claim 2 lacs each,so total loss under house property of both comes to Rs.4 lacs.Both have no let out income.

Case 2

Let out property,Is completion of construction a mandatory condition Or during pre construction period property will be deemed self occupied & interest is deductable only on completion.

Anyways once property is let out can Individual claim interest of Rs.4.25 lacs as deduction u/s 24 since property is not se;f occupied.

1. Both husband and wife can claim deduction in proportion to their share in the property subject to max 2 lacs in each case. If both have equal share, then both can claim deduction subject to max 4 lacs put together. This is with respect to SOP. 2. I think completion of construction does not necessarily mean obtaining completion certificate from prescribed authority. If the house is habitable, it would suffice I think. 3. There is no deeming provision to treat the property as SOP during pre construction stage. If the property is going to be self occupied (after construction) then construction should get completed in 3 yrs (from ay16-17, 5 yrs) in which case interest including pre construction interest cannot exceed 2 lacs for each co-owner. If the property is going to let out, then no time limit for completion of construction and interest including pre construction interest can be claimed as deduction without any limit in the proportion to share if co-owned.