Is it preconstruction period?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2012 if the building is under construction, after 3 years now possession wil received to buyer, during that period can buyer can claim deduction of the interest and principal amount of max deduction under the income tax ?
if not under which section? if it is to be claimed how can it be?
from the builder ,what doc to be asked to get the deduction ?
or what are the basis of prrof on which deduction of principal & interest can be claimed?

from which point can buyer can claim deduction of principal & interest amt?

Guest

Guest (Expert)

07 May 2012 Preconstruction period interest is till the year preceeding the previous year in which construction is complete and it is available as deduction in 5 equal instalments

You need to get a possession letter from the builder. In normal course such letter is received from the builder once they complies with all formalities, OC being the critical one so get a copy of OC also from the builder.

You can get maximum deduction of Rs 1.5 lakhs for interest u/s 24(b)

A statement from bank depicting interest and principal repayment for the year is sufficient to claim dedcution