Flat possession after 7 year and home loan tax benefit

Tax queries 1540 views 3 replies

VIJPS

manager

95 Points Joined December 2010

Hi Every one ,

I need to know how to calculate tax benefit for home who’s possession took more than 5 year. My case is like

I booked one flat in 2006 and taken home loan and it took approx 7 year to get possession. Till now I was paying PRE_EMI This year I got possession. Till now i have not taken any tax benefit on home loan

In last 7 year I paid approx 7 Lakh ( Till last year March31 2012) as pre-emi interest to bank.
Current finanace year I paid 90,000 as EMI interest
Paying society maintenance as 4000 Per month.
I am not staying in that flat because I am working in Bangalore and flat is in delhi .so right now I am paying EMI ( now my pre-emi converted to emi after procession ) and staying in ranted house.
i got tenant for delhi house , who will occopy next month at rent of 5000 per month ( current finance year will get 10,000 as rented income )

It would be help if someone guide me how to calculate the tax benefit. If any one want more info to know case please let me know .

thanks in advance

-9620244420

Replies (3)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

Your house property is self-occupied one, as you are not staying there & it si also not leto-out. so you total interst would be restricted to Rs 1.50lacs only. Your pre-emi interst is 1.40 lacs & your cureent eyar emi is 90000. So total interst would be restricted to only Rs 1.50lacs. You can claim dedcution u/s 80C upto Rs 1lacs ont he principal of teh loan.

As yoru proeprty is SOP you cannot get any deduction for society maintenance.

VIJPS

manager

95 Points Joined December 2010

Thanks Giridhar for your sugession.

Since this house took more than 3 year so i could not go for normal house loan benefit 1.5L. Am i right .

one more point that i got one tenent for rent of 5000 per month who will take next month onward .

thanks

vikas

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

Yes, u r right. Till u get possession u can't claim interst on HL.

If you ahve rented the house then in this case you will get interest dedcutino for the entore amount of int paid during teh eyar. Also you can claim flat 30% deduction towards expenses even if you incure the expense or no.