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Tax on pre emi of home loan

Tax queries 468 views 1 replies

ash

eng

35 Points Joined April 2013

Hi,

I had taken a home loan in January 2013 for under construction property. I opted for pre EMI till I occupy the home by December 2013. I paid pre EMI for Feb -April, in total 60,000. I will be paying pre EMI till December 2013, probably around 2,00,000 in total.

I will be renting out this property after I get occupation. Will I be able to get Tax benefit for this total amount (2,60,000) in this financial year 2013-2014?

Thanks,

Ashish

Replies (1)

Guest

Amount paid for principal is allowed as deduction only when house is completed, hence if house is completed in f y 13-14, it will be allowed only in f y 13-14 for the maximum of Rs 100000 u/s 80 C.

Interest on Housing loan is allowed for both period pre construction and post construction.