Claiming before possession interest

Dear Pankaj,

I am owning 2BHK in which i am living. I am aware that before possession interest should be claimed in five equal part for five year after taking possession. Amount of interest paid and claimed is as given below.

   Description            -   Year   -   Interest Paid   - Tax Benefit
Before Possession     -      2009-10  -      20000  -        Nil
Before Possession      -     2010-11   -     110000  -       Nil
After Possession       -     2011-12   -     192000  -      150000 
After Possession       -     2012-13   -     179000  -      150000  
After Possession       -     2013-14  -      165000  -      150000

Since interest paid by me since year 2011-14 was above 1.5 Lakhs, hence i could not claim the before possession interest since last three year. Now Limit is 2 lakhs and my interest paid during this financial year is 125000 only. in this scenario can i claim before possession interest for next two year?? If yes the how much?? Is it (20000 + 110000)/5 = 26000 + (this year interest 125000) ??? Or is it (20000 + 110000)/2 = 65000 + (this year interest 125000) where 2 is the number of year left???

Regards Jeevan

asked Jul 09 '15 at 20:01 by g1_patil 1123


You would only be able to claim max one fifth of interest paid before possession year, in a financial year.

So in your case it would be 26,000 + 1,25,000.

answered Jul 21 '15 at 18:47 by Pankaj Batra 5.2k320

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Asked: Jul 09 '15 at 20:01

Seen: 1,729 times

Last updated: Jul 21 '15 at 18:47