I have a home loan on an under construction property. Since the builder is not completing this construction even after 4 years, we opted to take a ready to move in flat with the same builder in another project. My home loan only has Pre EMI therefore no principal reduction component. Now since I am taking another loan and closing the first one as the bank says the current loan cannot be transferred on a tripartite agreement. My question is after taking the possession of the ready to move in flat, can I claim tax deduction under 80 C on the new loan. Also how much of the interest deduction can I claim on the second loan.
Hi,
You can claim the interest deduction on the new loan because you must not have claimed any deduction on the earlier loan because your home was under construction and no interest deduction is allowed till the home is under construction.
You can claim maximum deduction of 2 lac per annum if the house is used as self occupied. If it's rented out then there is no limit.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Yes you can claim deduction In 80c for new home loan as well benefit of negative income under the head income from house property
What do I need to do if I may have claimed Pre EMI interest deduction when filing returns (self) last year? Do I need to do rectification in this year's return?
just leave it
Hello,
Pre- Construction period interest cannot be claimed while filing return of income. It can be claimed only when the property is fully constructed. It is better if you revise your returns and remove the interest component claimed therein to avoid any further hasles.
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
If I need to revise my returns this year for the pre EMI interest deduction claimed on last year's return, How do i do that? Under what section do I make the adjustment? Or Do I need to make rectification on last year's return?
Hello,
You cannot do any adjustments in the current years return. You will have to file a revised return for the previous year.
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
Hi,
There will be no adjustments in this year's return. You will have to revise the return for the year in which you had claimed the deduction.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
