• Home loan tax benefit

I have purchase a under construction property in May . My EMI has been already started i have uploaded the tax benefit form in my company TCS, now my request has been canceled they want possession letter along with tax benefit form. How can i get tax benefit from under construction property.
Asked 7 years ago in Income Tax

Dear Sir,

You can claim Income Tax exemption on interest payments of up to Rs 2 lakh and another Rs 1.5 lakh under Section 80 C towards the principal repayment for a Self-occupied property.

However, you cannot seek these tax benefits in the pre-construction phase (i.e. no tax deductions available for an under construction house), even if you have started repaying the housing loan through EMIs.

However, the interest for the pre-construction period can be availed for deduction in five equal installments from the year the construction is complete.

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

you can claim home loan taxation benefit after getting possession of property , that's why company cancel your request for home loan tax benefit.

possession letter you have to collect from builder after completion of construction and registry of property.

Lalit Bansal
CA, Delhi
773 Answers
61 Consultations

5.0 on 5.0

Yes you can claim deduction for stamp duty and registration charges under section 80C.

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

yes you can claim stamp duty paid at the time of registry under section 80C when you paid the same

Lalit Bansal
CA, Delhi
773 Answers
61 Consultations

5.0 on 5.0

Hello,

You cannot claim benefit of Interest paid unless you receive possession of the property.

You can claim benefit of Stamp Duty & Registration charges u/s 80C.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hello,

Your Company is correct in rejecting your request as you cannot claim the benefit on Interest unless your property is in a livable position i.e a possession letter or occupation certificate is received. So you will have to wait till then.

Yes, you can very well claim the Stamp Duty & Registration Charges u/s 80C but subject to a maximum of Rs.150,000/- only.

Regards

Keerthiga Padmanabhan

M.Com., CA, LLB

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

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