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Home loan prepayment deuctions

Tanvee Gupta (4 Points)

28 March 2016

Can I claim a deduction on home loan prepayment (for an under-construction poperty)?

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Bhaskar joshi (Article) (1 Points)
Replied 29 March 2016

NO, you can't till you are having any income from that property.

for Deduction PRB;-

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Vishal Goel (Chartered Accountant) (1693 Points)
Replied 01 April 2016

The Interest that has been paid before the completion of construction should be aggregated and the whole aggregated amount shall be allowed as tax deduction in 5 equal installments for 5 successive Financial Years starting from the year in which the construction has been completed.

However, tax benefit of home loan under section 80C for repayment of principal part of the home loan is allowed only after the construction is complete and the completion certificate has been awarded. No deduction would be allowed under this section for repayment of principal for those years during which the property was under construction.