I have taken a bank loan to buy a property. To claim deduction u/s 24 of IT Act, for the interest component on loan, the property must have been constructed or completed within 3 years from the end of the FY in which the loan was taken.
Whats the deduction U/s 24, in case there is a delay in handing over of the house by the builder and its completed in the 4th year of the bank loan.
16 July 2013
Its is advisable to capitalized Interest Expenses incurred for first 3 years of Construction and claim 1/5th of total interest as deduction for first 5 after the completion of construction.
And interest related to fourth year, claim full amt of interest normally subject to as per status of house property whether is self occupied or let out
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