Section 24 b interest for deemed let out property after sale

I have two flats of 1050 sqft. (2 BHK) & 1475 Sq ft. (3 BHK).  2 BHK flat is self-occupied & another was under construction which got completed in Nov 2016 (Flat agreement done on June 2012). Now I am paying interest on home loan for SOP as Rs 199000/- & for Deemed let out property 368000 Also I have calculated pre emi interest for deemed let out property which comes to 151000 per year for next 5 years

Now my query is, suppose after one year if I sale this deemed let out (3 BHK) property then in the year of sale Can I claim preconstruction EMI of 151000 & loan interest of that year (24 B) e.g. 368000 (assuming the same amount).

Replies (3)

1. Any deduction claimed u/s. 80C will be disallowed, and added back to your income.

2. 20% of Preconstruction interest can be claimed u/s. 24b (subject to addition of deemed rental income) from the financial year 2016-17 itself, even for  next year if sold.

Sir, 

After sale I will not be owner of the property stil can I claim house property income. I can not show any real or notional income against this property still can I claim expenses like pre construction emi ded against it. This is deemed let out propery.

 

Till the closure of loan you will be owner of the property, may be for some part of the financial year. Hence, you will be entitled to get interest deduction corresponding to that part of the year. There is no pre condition for interest deduction u/s. 24b for the restriction of sale of the property. Also there is no restriction to claim 20% of the interest paid over construction period in the year of its sale. As it will be your second property, notional rental value shall be added to your income as deemed rental income of house property.

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