25 December 2012
Dear Experts I seek your help in resolving a query of mine: I have availed home loan for an underconstruction flat in Jaipur in 2010. I have been paying pre-EMIs since then. In Oct 2012, possession has been granted. Questions:
1. Will possession be deemed after getting registry of flat done? Bank is asking for registry. But, I can only get registry done in March. 2. If registry is done in March 2012, can i get full interest benefit (1.5L) while filing IT return of FY? Interest of FY 12-13 is approx Rs 1.5 Lacs. 3. Total Pre-EMI Interest is Rs 2 Lacs (until March 2012). Can i add Rs 40K (2L/5) in current year interest to get deduction of full interest & Pre-EMI (i.e. 1.5L+40K)? 4. I live in Mumbai. Can i still show this flat as self occupied and not add notional rental income in my IT return?
As you know that Interest + pre EMI interest is more than 1.9 Lacs 2012-13; do you think its better to show this as a rented property on a notional rent? As registry will be done in March 2013 only, it will be deemed as rented only for 1 month. So, can i claim full 1.9 L deduction by only adding one month's rent to the income?