Tax Benefits for Home Loan interest

Tax queries 1948 views 3 replies

Milind

Marketing Manager

28 Points Joined May 2009

Hi,

I have taken a home loan for which the first disbursement happened in March 2008. The house was under construction then. My EMI started immediately in April 2008.

From March 2008 till March 2009, I have done the part payments to builder & I got the possession of my house in March 2009. I have occupied house now.

The amount of interest that I paid in this period i.e. from March 08 to 09 is much higher than Rs. 1,50,000/-

My query is how can I claim the benefits & how much I should claim? I heard that I can claim 20% of amount of interest paid when house was under construction for next 5 years & also this amount is over & above Rs. 150000/-

Kindly advise

Replies (3)

Pinkey Chowbey

64 Points Joined April 2009

Interest for the pre-construction period is deductible in five equal instalments. The first instalment is deductible in the year in which construction of the property is completed or in which the property is acquired. " Pre construction period means the period commencing on the date of borrowing and ending March 31, immediately prior to the date of completion of construction/date of acquisition or date of repayment of loan, whichever is earlier.

In ur case pre construction period means the period from March 08 To March 09. The entire interest paid by u during this period is deductible in five equal instalments. The first instalment is deductible in the FY 2008-09.

From the FY 2009-10 u will be entitled to a deduction of one instalment of the pre construction period interest in addition to the amount of interest paid by u through the EMIs during the FY 2009-10 subject to the maximum of Rs. 150000/-. Total deduction u/s 24 cannot exceed Rs.150000/-

saleemoddin

php developer

66 Points Joined February 2009

Hi,

whatever pinkey chowbey said is correct. You can calculate your income tax at www.payit.in developed by www.mimir.in

Manikanta Raju CA,CWA,(CS)

Industry

4482 Points Joined April 2009

You can cliam housing loan repayment as deduction u/s 80C-

The following are the conditions which are to be satisfied are as follows-

1) The house should not transfer for a period of 5 years, if you transfer , the aggregate of deduction availed earlier in respect of such repayment of installment shall be deemed to be the income in the year of trransfer of property

2) The deduction including other savings undfer section 80C is limited to Rs.1,00,000/- only