Vicky (IT) (37 Points)
26 July 2011I have second home loan. This was disbused last year sep. 2010.
My full EMI started in Dec 2010 and got possession in Feb 2011.
My query is can I show whole interest as tax rebate (minus rented income)????
CA Nitu Agarwal
(CA, M.Com)
(266 Points)
Replied 26 July 2011
Please clarify first.. how many house do you own.. any sale/purchase... and total intt paid... Whether houses are self occupied or rented?
Vicky
(IT)
(37 Points)
Replied 26 July 2011
thanks for reply.
I have two houses. House I mentioned above is rented one.
For self occupied house interest paid is 23000
For rented one, total interest paid is Rs. 163000. For rented flat I paid pre emi till Nov and from Dec onwards full emi started. I got possession of rented flat in Feb 2011.
pahuja
(C.A Final Student )
(472 Points)
Replied 26 July 2011
Vicky
(IT)
(37 Points)
Replied 26 July 2011
I heard that pre emi paid should be equally devided in 5 yrs. In my case I paid pre-emi till Nov2010. And my full EMI started in Dec 2010.
So in my case, can I claim whole interest for tax excemption?
CA Nitu Agarwal
(CA, M.Com)
(266 Points)
Replied 26 July 2011
You get deduction for the whole amount paid as intt on home loan in the year of possession, whether it's pre-emi or not. Intt before before that year will be equally divided in 5 installments.
In your case,
For Self occupied, you will get deduction of Rs. 23000/-.
For Rented one, if intt paid during the financial year 2010-11 is Rs. 163000/-, you will get deduction of Rs. 163000+ 1/5 of intt paid as pre-emi before F.Y> 2010-11.
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