Hi, I took a home loan in May2019 and started the construction. As this is independent home the construction has completed in 8months and took possession in Feb2020. So i'm assuming i can claim Interest benefit from Mar2020 and for the interest paid for period for May2019-Feb2020 can i claim full interest in FY2019-20 itself or 1/5th of the pre emi paid till Feb2020? If this is wrong please let me know how i should claim the interest benefit for FY2019-20 Total interest paid in 2019-20- Rs. 166185 Interest paid in Mar[deleted]
Dear Sir,
Hope you are doing well !!
The pre-construction interest incurred on a housing loan is allowed as a deduction in five equal instalments, beginning from the financial year (FY) in which the property has been completely constructed.
So, you need to claim the pre construction interest in five equal installments.
As the construction got completed in the same year of loan there won't be any pre construction interest and hence you can claim it in same year.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi
You can claim entire interest for FY 19-20 in the same year.
Hi
You can get deduction of entire amount due construction completed in same financial year.
Pre consturction Int till Feb 2020 will be dedcuted in equal yearl intallment & March int will be dedcuted under HP income.from FY 2019-20
Hello,
You would be eligible to claim the entire interest in the same year.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Pre EMI interest is to be claimed in 5 equal instalments.So starting from 2019-20 you can claim the benefit in next 4 years.
Hi, As per my opinion ..you can avail interest deduction from the year in which the possession is received. Hence you will be able to claim entire interest i.e. 166185