12 September 2016
Dear Sir, An assesse has taken HBL on Aug'2015 for his new flat, and he is paying Interest and EMI from Aug'2015 onwards. The EMI Amount per month is Rs. 33000.00 and Interest Amt per months Rs. 28000.00 (Approx). He has got Possession of the flat on Jan'2016. My query is whether he will get the benefit of EMI Amount from Aug'2015 and Interest payment from Aug'2015 in his IT Return for F.Y. 2015-16.
12 September 2016
To Claim the Interest under section 24(b) Possession must be require, So he can claim the Interest from January only. If during the period of August to January the property is under construction than you can claim this interest in 5 equal annual installments commencing from the P.Y in which the house is acquired or constructed. Thanks.
CAclubindia
