Home loan
This query is : Resolved
06 May 2013
Dear Friend
If i am closing a home loan before possession of that home.. will i still be eligible to claim IT rebate for the interests i have paid.
Regards
If i am closing a home loan before possession of that home.. will i still be eligible to claim IT rebate for the interests i have paid.
Regards
06 May 2013
possession is not relevant for claiming deduction of interest on hoam loan. What is relevant is purchase of home by registereing the sale agreement with govt local authority. You will be allowed deduction of interest on hoam loan paid during the year subject to maximum of Rs150000/- in case of SOP.
07 May 2013
Yes. but provided u can avail this benefit upto max of 150000/- and intt is for one year only.
Message likes :
1 times
07 May 2013
I disagree with experts Pradeep Agarwal and Sumit Arora.
In my view,despite prepayment, you are eligible to claim the interest u/s 24 and the principal u/s 80C.
However, in order to claim the interest you should be in possession of the house. So all preconstruction/prepossession interest will be allowed in 5 equal installments beginning with the year in which you receive the possession of the House Property.(Refer Explanation to Clause (b) of Section 24)
In my view,despite prepayment, you are eligible to claim the interest u/s 24 and the principal u/s 80C.
However, in order to claim the interest you should be in possession of the house. So all preconstruction/prepossession interest will be allowed in 5 equal installments beginning with the year in which you receive the possession of the House Property.(Refer Explanation to Clause (b) of Section 24)
Message likes :
1 times
07 May 2013
Dear Anand,
Language used in explanation is aquired and possesion is no where mentioned in the explanation. As per general understanding the property is said to be aquired when you have entered into agreement and paid the amount. Correct me if i'm wrong
Language used in explanation is aquired and possesion is no where mentioned in the explanation. As per general understanding the property is said to be aquired when you have entered into agreement and paid the amount. Correct me if i'm wrong
Message likes :
1 times
07 May 2013
Thanks a ton for replying.. however would like to mention the followings
1. I availed the loan in FY 10
1. The house is under construction
2. Possession is yet to be given by housing board
3. Leese agreement of plot is executed and registered
4. after possession i would be renting out my house
Now i want to foreclose my loan so my worry is that if i foreclose my loan , will i still be able to claim rebate for the interests i have paid
1. I availed the loan in FY 10
1. The house is under construction
2. Possession is yet to be given by housing board
3. Leese agreement of plot is executed and registered
4. after possession i would be renting out my house
Now i want to foreclose my loan so my worry is that if i foreclose my loan , will i still be able to claim rebate for the interests i have paid
07 May 2013
In your case Mr. Anand is correct.
First construction should get completed within three years.
For the period prior to the previous year in which property get constructed you will get deduction in 5 equal installments starting from the year of construction. You will get deduction of installments whether the loan is fully repaid or not.
First construction should get completed within three years.
For the period prior to the previous year in which property get constructed you will get deduction in 5 equal installments starting from the year of construction. You will get deduction of installments whether the loan is fully repaid or not.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- Event company query
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
CAclubindia
