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Intrest on home loan

Sandhya (Article Assistant) (55 Points)

15 November 2014

Is pre-EMI interest also eligible for for deduction u/a 24 b as given in loan intt certificate?? Pls rply....

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9 Replies

Sandhya (Article Assistant) (55 Points)
Replied 15 November 2014

Any one is here who knows..??

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Sahil Arora (Student) (190 Points)
Replied 15 November 2014

You want say that, If a person pays his EMI before due date he has to pay pre-payment charges & something like that, is that amount or interest allowed as deduction ?

CA SUKSHAM ARORA (CA) (569 Points)
Replied 15 November 2014

even i am not able to under your querry .... give eg if possible

Mihir (Wealth Manager) (5293 Points)
Replied 15 November 2014

Pre-EMI interest is available for deduction u/s 24 in 5 equal installment after the assessee obtains the possession, and the principal portion also is not available for deduction u/s 80C till possession.

Akshay Bindal (na) (23 Points)
Replied 16 November 2014

No pre emi interest is not forms part of pre construction interest

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Sandhya (Article Assistant) (55 Points)
Replied 16 November 2014

Means it will b eligible for deduction naa...?

Mihir (Wealth Manager) (5293 Points)
Replied 16 November 2014

Pre-EMI and EMI both eligible for deduction u/s 24 after the completion of the construction in 5 equal installments.

https://emicalculator.net/pre-emi-vs-full-emi-understanding-payment-schemes-for-under-construction-properties

Sandhya (Article Assistant) (55 Points)
Replied 16 November 2014

Ok.. N Thanks to all for ur guidance 😊

Naveen Kumar Jain (Chartered Accountant) (641 Points)
Replied 18 November 2014

Pre Emi interest should not be confused with construction stage. It is the interest during the broken period between disbursement of loan and time when EMI starts. Generally EMI starts on a fixed date of the month following disbursement of loan.If it relates to post construction then it is allowed as deduction in the year in which it is paid, just like interest included in EMI. If it relates to interest during construction stage, it will be allowed in 5 instalments post construction.