Interest on housing loan

This query is : Resolved

Vinita (Querist)
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10 March 2009 House taken in joint names and even loan taken in the joint names. The house is under construction. The principal amount can be deducted U/s 80C upto Rs 1 lac.
Can interest on loan(limit upto 1.5 lacs) can be deducted now or only after possession?
If it can be claimed after possession then the previous interest can be claimed as deduction?

jegannath G

jegannath G (Expert)
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10 March 2009 Any pre-construction period interest can be claimed only after taken possession that too only 1/4 of the interest can claimed in the first year balance in next three years.

if it is a joint property , you can claim only to the proportion of ownership.

K V Subba Rao

K V Subba Rao (Expert)
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10 March 2009 "...pre construction period interest, that is, the interest up to the previous year immediately preceding the previous year in which the construction is completed can be aggregated and claimed in five equal annual instalments commencing from the year in which the construction is completed"

Source: http://www.blonnet.com/iw/2003/02/23/stories/2003022300491300.htm

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C A GROUP COACHING

C A GROUP COACHING (Expert)
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15 March 2009 PRE CONSTRUCTION PERIOD INTEREST ACCUMULATION & W/OFF PERIOD GIVEN BY MR SUBBA RAO IS CORRECT IT IS 5 EQUAL INSTALLMENTS COMMENCING FROM THE YEAR IN WHICH CONST. IS COMPLETED. IT IS NOT 4 YEARS