Hello Folks,
I bought an under construction property last year (May 2021), for which I took a home loan. As payment plan is CLP based (construction linked plan), I have been paying pre-emi interest each month. The property is supposed to get delivered in August 2022.
Till now, I have paid approx. 1.2 lakhs as pre-emi interest in this year and by the time the construction gets complete, I would have paid approx. 4 lakhs in total to the bank. Now while filling ITR, I am confused and have following questions:
1. Am I entitled for any tax relief in fy 2021-22?
2. If not, is it the case that I can claim under section 24 only when the construction is complete? (in five financial years)
3. If above point is true: the problem is once construction is complete, I'll be paying regular emi and the interest amount would easily shoot 2 lakh limit under section 24. Does it mean I would not be able to take any tax benefit on the pre-emi interest amount?
Kindly suggest.
CAclubindia
