04 May 2010
I have booked a flat in noida under Construvtion linked plan. I have taken a home loan for the payment of instalements. But right now i am only paying the interest portion of the home loan and my actual emi( Principal+ interest) will start once i get the possession of flat which is due around december 2011.
Plz clarify whether i can get the benefit of tax deduction on interest part which right now i am paying to the bank and if yes then how ?
04 May 2010
It is to be noted that the deduction for interest on loan taken is allowable only after the completion of construction of house property u/s 24(b). According to the said section preconstruction period interest is allowed from the year in which the construction gets completed in five equal annual instalments subject to the overall limit as per the said section. In the given case it will be restricted to Rs 150000 per year including interest for post construction period.
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