I booked a flat in 2006 which is still under construction and expected possession in 2013.Till now I have paid Rs.20.00 Lac to Builder, from own and Home loan resources. HL was taken in 2007 and I started paying interest and after 2 years EMI also started. Since the possession has not been given I have not claimed in mt IT return, any deduction of interest as well as Principal amount paid. Now I want a clarification when I get the possession next year, whether I will be eligible for claiming interest paid from 2007. thanks, ZAFAR
1 Answers
If construction of house is not complete even after three financial years since the year in which loan was taken, deduction of Rs 1.5 lac for home loan interest u/s 24 is not available.
In such case, deduction would be limited to Rs 30,000 per year in case of self-occupied property. This limit would also include pre-emi interest (1/5th p.a.).
thanks , pankaj
Related