It exemption

MV Bhuvana (M.Com) (59 Points)

13 January 2016  

A home was purchased by availing loan from A Bank which is self-occupied. The loan amount paid is being considered for availing IT Exemption during the same FY based on the IT Certificate issued by the bank.

Another property was purchased at a later date by availing loan from C Bank which is in under construction stage. The loan amount paid is not being considered for availing IT Exemption as it is under construction stage, the bank does not have option to give IT Certificate.

Note:- 10% of the Loan amount is pending for disbursement by C Bank yet.

Queries are –

1) Whether loan amount paid at C Bank is eligible for IT Exemption from which date onwards. As per my knowledge that only upon completion, the loan amount can be claimed as deduction for IT Purpose.

2) Whether pre-emi interest paid & EMI paid at C Bank is eligible for IT Exemption

3) If I transfer my loan at C bank to another bank this FY, what documents I have to collect from the C bank to avail IT Exemption and in which period i.e. FY it can be claimed.

4) If I can claim exemption this FY itself, then do I have to calculate Income from house property for an under construction property also and pay IT for that on deemed to be let out basis.