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?

chetan soni

chetan soni (Expert)
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10 March 2009 Interest can be claim only after possession. After possession it can be said that the property is self occupied.
Earlier interest paid can be claim as per the provision of sec 24(b) as Pre EMI interest. This interest is allowed to claim in 5 years. eg.

Say Pre EMI interest for the year 08-09 is Rs. 100000. Then it can be claim in 5 years starting from 2008-09 to 2012-13 as i/5 of Rs. 100000 i.e Rs. 20,000 in each year along with regular interest after possession.