Home loan and vacant home

Dear Pankaj,

I took a home loan of around 24.6 Lacs in 2009 September in my name only and in this year 2013 August i have got the possession of the home. I have plan to keep this home vacant for some time as my office is far from this home so i stay in rented accommodation.

Now i have few question related to whole scenario-

1- As i know i can get home loan interest rebate of upto 1.5 Lacs under section 24 and principle under 80c. But since my interest has always been more than 1.5 Lacs for all previous years so i want to know, Can i get any benefit on the interest that have paid during pre-possession period?

2- As i understand that if I rent out or keep it vacant and show "notional rent" then i can get rebate on whole interest amount. So my question is that- Is there any rule applied kind of like "amount of interest being set off against amount of rented income"? Or i will get rebate on whole interest amount against any minimum rent income? I hope i am able to explain my point. Basically i want to know is there any relation between maximum interest amount and rented income.

3- Now my this question is basically a combination of both 1st & 2nd. As i understand that the rebate on the interest paid before possession can be claimed for five successive years after possession, provided it falls within the limit of 1.5 Lacs. So now my question is can I get tax benefit of pre-possession interest amount against the "rented house"? What i may do if income tax rule allows is that make total of interest paid during this year and add some of the amount of interest from pre-possession period and take a rebate on this total amount against "rented income". This thing i may do for 5 successive year starting from this year.

Your answers will help me out a alot, Eagerly waiting for them.

Best Regards Gaurav

asked Sep 18 '13 at 09:55 by gsharma 1467

Interest paid before possession year can be claimed in five equal installments starting from possession year. So in case your total interest before possession year was 5 lakhs, you can claim extra 1 lakh per year starting from possession year. But max claim can be 1.5 lakhs only for self occupied property. There is no limit for rented house.

You would rebate for full interest amount if any notional rental income is shown.

answered Sep 19 '13 at 13:02 by Pankaj Batra 5.2k320

Dear Pankaj, Please tell me one important thing in my case - Can i take rebate on pre-possession interest amount against "notional rent" shown after possession? Best Regards Gaurav
(Sep 19 '13 at 14:18) gsharma
Yes, you can take full rebate on pre possession interest if house is let out or deemed to be let out.
(Sep 19 '13 at 17:27) Pankaj Batra

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Asked: Sep 18 '13 at 09:55

Seen: 2,137 times

Last updated: Sep 19 '13 at 17:27