Tax savings on composite housing loan

Hi,

I have a taken a composite home loan for purchase of a site. As per the terms, the loan is called composite home loan since there is a requirement to start construction of a house in the site within 2 years from purchase. If the construction is not started then the interest rates will be raised to that of commercial (personal) loan. I have registered the site and hence commenced the loan in May 2013. My question is as follows:

Can I claim exemption on the interest paid (under section 24 or any other)? I stay in a rented house and so I am claiming HRA deduction.

Additional information - I have another site which I purchased in 2007 and the loan is nearing completion. I have not claimed any IT deduction on this. This is a composite loan as well and since I have not constructed a house within 2 years I'm paying commercial rate of interest for this loan. These are the only two properties (both sites) that I have in my name. I am not married.

Thanks in anticipation!

asked Nov 22 '13 at 16:23 by VeeJay 135


Under section 24, you would only be able to claim income tax benefit for such loan once the construction of house is completed.

answered Nov 23 '13 at 01:00 by Pankaj Batra 5.2k320

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Asked: Nov 22 '13 at 16:23

Seen: 3,590 times

Last updated: Nov 23 '13 at 01:00