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What is pre-emi loan or plan while purchasing flat

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subbu appala

article trainee

152 Points Posted on 02 July 2023

What is pre-emi loan or pre-emi plan in the context of purchasing or construction of flat. Under pre-emi plan bulider pays interest to buyer. that interest is showing under 194A in 26AS. What is it please explain.

Replies (5)

Quick Summary

A pre-EMI loan or plan, often offered when buying a flat, is an arrangement where the builder pays your home loan EMIs to the bank until you take possession of the property. This interest paid by the builder is typically shown under section 194A in your 26AS statement and is taxable income. After you receive possession, you'll be responsible for paying the EMIs directly.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212535 Points Posted on 03 July 2023

That interest amount is taxable, declare it u/h. IFOS.

subbu appala

article trainee

152 Points Posted on 03 July 2023

Thank you sir

Can you give details about pre emi plan ( i.e what's it etc.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212535 Points Posted on 03 July 2023

While booking an apartment, builder offers some freebies. One such is pre EMI facility. In this case builder offers to pay all the home loan EMIs on behalf of customer to Bank, till he gives possession of the apartment to the customer. After possession the customer pays home loan EMIs as usual.