• Tax benefits on interest payments

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 8 months ago in Income Tax from Krishnapur,Kolkata, West Bengal

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
Abhishek Dugar
CA, Mumbai
3456 Answers
156 Consultations

5.0 on 5.0


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
2017 Answers
63 Consultations

5.0 on 5.0

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
857 Answers
55 Consultations

5.0 on 5.0

Yes, you can avail the benefit upto 2 lakhs 
Vidya Jain
CA, Kolkata
614 Answers
13 Consultations

4.8 on 5.0

Dear sir,
where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal 5 installments for the said previous year and for each of the four immediately succeeding previous years.
Current year interest shall not exceed Rs.200000
Shiv Kumar Agarwal
CA, Delhi
273 Answers
60 Consultations

5.0 on 5.0

You can claim Housing Loan Interest benefit for house already occupied. For the house under Construction, the interest paid during Construction can be claimed in 5 equal installments from the Financial Year in which Possession Certificate of the House is received
Pradeep Bhat
CA, Bengaluru
477 Answers
30 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA