Tax benefits on interest payments

Sir/Madam 
I have two flats. One is occupied by me and the other is under construction. EMI is going on for  both the flats. Can I use the interest paid on both the EMI conjointly for tax benefits? Please help?
Asked 4 days ago in Income Tax from Krishnapur,Kolkata, West Bengal
Hi,

Yes, you can claim the interest on both the properties jointly. But, interest on under construction property is not allowed as rebate till the time you get possession .

In case of underconstruction property, you can get the tax rebate for the interest paid on home loanonce you receive the possession of the new house.

The deduction for the first 5 years for underconstruction? property will be as follows after receipt of possession:

1. 1/5 of the total interest paid during pre-construction period; plus
2. Interest paid in the year in which you get the possession.

The above interest is subject to the maximum limit applicable.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
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Hi

The interest for the construction period cannot be claimed as deduction right now. It will be allowed in 5 equal installments in the year of completion of the construction and succeeding 4 years subject to the maximum limit of interest deduction allowable.
Lakshita Bhandari
CA, Mumbai
700 Answers
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You can claim interest on housing in loan in respect of both the flats. However, the interest paid during the construction period will be allowed only after the completion of the house construction and it will be allowed in 5 equal annual installments. 
B Vijaya Kumar
CA, Hyderabad
767 Answers
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Yes, you can avail the benefit upto 2 lakhs 
Vidya Jain
CA, Kolkata
420 Answers
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