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Deduction on home loan interest cannot be claimed when the house is under construction. This pre-construction interest can be claimed only after the construction is finished.
The interest for the period during which the house was under construction can be availed in five equal instalments after the construction is completed.
However, the maximum eligibility remains capped at Rs 2 lakh.
Simply,The interest paid can be claimed in equal parts in five financial years post completion or handing over of property within the overall annual limit of Rs. 2 lakh.