Pre EMI Interest for Housing loan

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Hi , I had applied for  a House loan-Duplex  on Year-2008 for 20L (property cost =28L). Payment made to Builder as  5.5L for land registration+stamp duty , 1.2L for booking amount ,1L for devlopment , 5L for 1st Installement , Total paid = 12.7 L , Out of which Bank has paid 11.5L , Own contribution = 1.2L , i am paying Pre EMI interest , Paid so far 63000/--- , Property is under construction & will get Possession on 2012 .

Bank has issued me the Interest paid provisional certificate --

now my question is am i eligible for deduction for the interest paid ,stamp duty/registration so far , if no , how to claim same in coming year ,

Regards

Rashmi

 

 

Replies (5)

Hi deduction for housing loan interest is available under section 24(b). For claiming deduction of interest following points are important:

1. Construction should be completed within 3 years from the end of the financial year in which capital was borrowed.

2. Interest for prior period willbe allowed in 5 equal installment.

3. Maximum limit will be Rs. 1,50,000.

If construction is not completed within 3 years as mentioned in point 1. The maximum deduction amount will be Rs. 30,000.

One more point these deduction willbe allowed after completion of construction and principal amount of loan repayment will also be allowed under section 80C

1) TILL THE CONSTRUCTION GETS COMPLETED

>>>>>>>>>>>>>U CAN CLAIM THE REPAYMENT OF PRINCIPAL U/S 80 - C AS DEDUCTION

2) WHEN CONSTRUCTION GETS COMPLETED

>>>>>>>>INTEREST UPTO THE YEAR PRIOR TO COMPLETION IN 5 EQUAL ANNUAL INSTALLMENTS U/S 24

>>>>>>>>>INTEREST OF THAT YEAR U/S 24

>>>>>>>> U CAN CLAIM THE REPAYMENT OF PRINCIPAL U/S 80 - C AS DEDUCTION

 

3) AT THE TIME OF SALE OF PROPERTY

>>>>>>>>>>TOTAL COST OF ACQUISTION INCLUDING STAM DUTY, REGISTRATION CHARGES, BROKERAGE, ETC CAN BE DEDUCTED FROM SALE PRICE..

Originally posted by : Amir

1) TILL THE CONSTRUCTION GETS COMPLETED
>>>>>>>>>>>>>U CAN CLAIM THE REPAYMENT OF PRINCIPAL U/S 80 - C AS DEDUCTION

No deduction of Principal Component is allowed while the property is under construction..

 

HI,

If payment made for current year interest is 140000.00 and pre acquisition interest is 40000,then in that case can i claim 180000 or 150000 only


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