First let us understand the provision as per Sec 24 B.
The Maximum limit of deduction laid down by Sec 24 b is as follows:
1) In Let Out Property/Deemed to be Let Out – Rs. 2 lakh from Financial Year 2017-18. (There is no limit till F.Y 2016-17)
2) Self Occupied House (SOP) – Rs. 2,00,000. (1,50,000 for A.y 2014-15 and before)
In the following cases the above limit of Rs 2,00,000 for SOP shall be reduced to Rs. 30,000
– Loan borrowed before 01-04-1999 for any purpose related to house property.
– Loan borrowed after 01-04-1999 for any purpose other than construction or acquisition.
– If construction/acquisition is not completed within 5 years from the end of the financial year (3 years till financial year 2015-16) in which capital was borrowed.
Now coming to your query, in your case construction was completed on 31.07.2017 and so pre-EMI interest paid shall be allowed till 31.03.2017 in 5 equal installments. That means total interest paid from the date of loan i.e. 01.04.2010 till 31.03.2017 shall be allowed in 5 equal installments from the financial year ending on 31.03.2018 onwards. For the FY 2017-18, the Interest paid during the financial year in which construction is completed can be claimed in addition to the 1/5th instalment of the Pre EMI interest.
However as per the provision, loss from Housing Property for let out property is restricted to Rs. 2,00,000/- from the financial year 2017-18. Also since the construction period is more than 5 years in your case, the total interest that can be claimed u/s 24(b) shall be restricted to Rs. 30,000/- only and not Rs. 2,00,000/-, which is the limit u/s 24(b) under normal circumstances.
Hope this explains.
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