Possesion of house received but emi not started

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Ramesh (Querist)
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21 March 2013 Hi all,

Please advise in following case, a person can start claiming interest on housing loan:

A person has bought a house from a constructor and taken a loan from bank. Last disbursement is pending due to some reasons. However, the constructor has given the possession to the person as he knows him personally. As last disbursement is not made bank is charging interest as pre-emi.

Thx in advance.
Ramesh

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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21 March 2013 Your Question is not Clear to me.
Can You Pls Elaborate.

Well, I let you know that if possession is not received then,

no Principle payment is deducted u/s 80C.
no interest is allowed.
but its allowed as pre-construction period as 1/5th.

Ramesh

Ramesh (Querist)
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21 March 2013 Sir,
Thanks for your prompt response. Normally, the builder gives possession after receiving full payment from the purchaser. In this case final disbursement of loan from bank is not paid to the builder even though the construction is completed. However, as builder is knowing the purchaser (his relative only), he has given possession to the purchaser. So the question is whether the purchaser can claim benefit of interest.
Rgds,
Ramesh

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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21 March 2013 yes, he can claim.
possession is must.
but he should paid interest .

Message likes : 1 times

Ramesh

Ramesh (Querist)
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16 April 2013 Boss,
Just to confirm that 80C is not connected with possession. I mean if a person has booked a house and paid stamp duty/ registration fees in FY12-13 but possession is given to him in FY 13-14, he can claim stampduty/registration fees in FY 2012-13.
Rgds,
Ramesh