Emi home loan

This query is : Resolved

CA Jahanvi Trivedi (Querist)
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09 November 2012 I want to know whether we can claim deduction under Income from house property for Interest amount paid on home loan taken for a home which is under construction?
If we cannot take it now, can we take in future when the construction gets complete the deduction for the interest amounts paid in past years together?
Further can we claim deduction u/s 80C for the principal element of the same loan now as the property is under construction?

CMA Nishad Patkar

CMA Nishad Patkar (Expert)
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10 November 2012 Interest payable by an assessee in respect to Loan taken for the property whose construction is not completed is eligible for deduction in five equal annual installments commencing from the previous year in which the house is acquired or constructed.

Yes you can claim the deduction of principal element of loan repayment u/s 80C for the property which is under construction until it is a new construction.