Tax benefits on interest payments

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

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.

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.

Yes, you can avail the benefit upto 2 lakhs

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

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