Tax on housing loan

This would be the first home, and not planned for renting

1. In case of home loan for self-occupied properties, you may claim deduction of interest u/s 24, to the extent of Rs.2 lacs per year (after completion of construction)
2. Time limit to complete construction: 5 yrs from the end of the FY in which loan is availed
3. Further, in respect of pre-construction period, you may claim pre-construction period interest within the limit of Rs.2 lacs (as above) in 5 equal instalments. For details: https://www.charteredclub.com/tax-benefit-on-home-loan/
4. When the property is registered, you may claim deduction of stamp duty and also repayment of principal (u/s 80C to the extent of Rs.1.5 lacs)
5. Further, if certain conditions are satisfied, you may claim deduction of interest u/s 80EE up to Rs.50,000 pa over and above deduction u/s 24. For details: https://cleartax.in/guide/section-80ee-deduction-on-interest-on-home-loan

Thanks for reply Poornima.

About points 1 and 3, is the limit of Rs. 2 lac inclusive of both? Pre construction interest as said can be claimed in five yrs. What about section 24 (pt. 1)? Can this be claimed each year capped by 2 lac, until the EMI lasts (loan closure)?

1. Yes, 1 & 3 together not to exceed 2 lacs
2. Pre-construction as well as post-construction interest can be claimed after completion of construction (within the time limit)
3. Deduction of interest can be claimed till repayment of loan

Thakn you.

Hope the possession time will not matter in any case