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Treatment of interest on home loan for a vacant property

Naveen Arora (MBA) (29 Points)

06 July 2018

I have a house (which is currently vacant) in Faridabad, while I stay in New Delhi. I had constructed this house through a home loan. Will I get the benefit of maximum amount Rs. 2 lakhs (home loan interest) under Income Tax laws or is there a limit to the benefit under current circumstances. Please advise.

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2 Replies

CA ABHAY GUPTA (Practice) (3235 Points)
Replied 06 July 2018

yes you cn avail the benefit of rs 200000 u/s 24(b)

Kavita Modi (CA Job) (232 Points)
Replied 06 July 2018

in case of loan for constructed property, construction should be completed maximum within five years (earlier this was 3 years) from the end of the financial year of loan. for example if loan has been taken in f.y 2015-16 the construction should be finished by 2020-21. thus in your case you have to check when construction of your house has been finished. maximum limit for interest amount is RS 2 lakhs and principle can be claimed u/s 80C for RS. 1.5 lakhs. also if your Delhi house is also your own house then you have to assume house property income on that.