Tax dedcution under section 24(b)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2016 I have booked my apartment on Jan 31, 2012. LIC housing snacyioned my loan on 24 Feb 2012 and disbursal started effective March 31, 2012.Please note that since The flat was taken on CLP plan(construction linked plan), so the disbursal went on till Dec 2013.

The builder got Certificate of Completion in Sep 2015 and handed over possession to me on Dec 7, 2015.While giving possession, the busilder just provided us Provisional letter of possession and the flat has still not been registered while the e-registration papers has been purchased.

Now i have the following queries with regard to Income Tax section 24(b):

Since, the maximum tax deduction allowed under Section 24 of IT act 1961 for a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs if the property is acquired/constructed completed within 3 years from the end of financial year in which the loan was taken or else it is reduced to Rs. 30000.

1) When the property will be treated as acquired/constructed as per provisions of IT act 1961?(Plesae note that phycial possession of flat has already taken place but registry has not taken place)?

2) Since, i paid Rent till Dec 5, 2016, whether i will be eligible for HRA also till Dec 5, 2016 along with cliaming deductions under section 24(b) of Income Tax?

3) Does the period of 3 years from the end of financial year in which the loan was taken will be considered as elapsed, as the flat was purchased under CLP plan and capital was borrowed from LIC Housing till Dec 2013.

4) Finally, for Financial Year 2015-16 for what amount i will be eligible for Tax deduction

(Rs 2 Lakhs or Rs 30000)?

Rupesh Jain

Rupesh Jain (Expert)
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28 June 2016 your house completer after the three year form date of loan. you can claim Rs. 30000/- deduction. you can claim Hra DEDCUTION .
for intt amount Rs. 30000/- and principle amoutn you can calim upto Rs. 150000/- u/s 80C