01 September 2009
I am planning to buy a house through a house loan. The house is in the construction stage. The builder group has just started the construction of the apartment. The payment will be done in parts and hence the loan will also be taken in parts as per the requirement. According to the builder, possession will be given in March 2011. Only after the possession EMIs will start and till then I'll have to pay interest on the loan taken from bank.
My query is:
What deduction / rebate in income tax will I receive in this financial year (09-10) and in the next year, before possession?
01 September 2009
Pre-EMI interest can be claimed over a period of five years from the financial year of completion. This deduction would be in addition to the normal interest deduction that you can claim from the year of completion or hand over of house to you.
CAclubindia
