18 June 2008
I have purchased a plot in FY 2007-08 and paid some of amount towards repayment and interest on loan. But i have not started construxction. so i want to know can i claim deduction under income tax for repayment and interest.
18 June 2008
The financial charges paid by you before comleted the construction may be taken from the date of complted the house as a deffered payment for next 5 years.
18 June 2008
The Section 24(b) of the Income Tax Act, 1961 is applicable on Home loan for purchase of house or construction of the house property. You can avail a deduction of up to Rs. 1,50,000 of you total tax liability, Also reconstruction or renewal or repairs is eligible for deductions under the said section.
18 June 2008
Deduction u/s 24(b) shall be claimed if the construction is completed or repayment starts for the loan,whichever is occured earlier.In your case you have not started the construction but start the repayment.Hence interest is eligile for deduction u/s 24(b) and principal is eligible u/s 80c.
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