INTEREST DEDUCTION ELGIBILITY OF HOME LOAN

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I HAVE TAKEN HOME LOAN FROM GOVT AGENCY OF RS 15 LAKHS IN APR 07 PAYABLE IN 130 INSTALLMENTS (.) THE AGENCY PAID THE HOUSING COMPANY AS PER THEIR SCHEDULE AND IT STARTED DEDUCTING INTEREST FOR LOAN FROM OCT 2007 AND CONTINUED DEDUCTING INTEREST UPTO AUG 10 THEREAFTER I AM PAYING EMI OF RS17288/-(.) I PAID INTEREST IN FY 07-08(AY 08-09) RS 21775/-, FY 08-09(AY 09-10) RS 45723/- FY 09-10(AY-10-11) RS 85982 FY 10-11(AY 11-12) RS 114285/- TOTAL INTEREST PAID IN 04 FY IS RS 267,795/-(.) MY HOUSE WILL COME FOR POSSESSION IN JULY/AUG 2012(,) HOUSE WILL BE RENTED ON POSSESSION (.) WHETHER I AM ENTITLED FOR 1.5 LAKH INTEREST DEDUCTION UNDER SECTION 24B (.)

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1 Answers

Section 24 is only applicable for a residence constructed within three financial years after the loan is taken. As possession of house is not taken within this time period, no tax benefit can be availed.

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