Prasun Chandra Das (Banker) 12 June 2012

Section 24(b) benefit-house loan

I am planning to buy an under-construction property. But I am opting for Down Payment (DP) plan, in which the bank will disburse the loan amount in full and I shall pay the margin amount in full. Full EMI will start from the 1st day. My question is: Do I have to claim interest exemption u/s 24(b) during 5 years from the year of completion of the flat (as is normally the case for under construction property), or (since all payments are made in full) I can claim tax benefit for interest payment upto Rs.1.50 lacs in this Financial year itself?

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Prasun Chandra Das (Banker) 14 June 2012

27 views to the post but no answers !!!!! Either my question is extremely silly or extremely tough

No.. seriously .. someone please advise..

A V Vishal (Advocate) 16 June 2012

For an under construction flat your pre-emi payments qualifies only 1/5 of the interest payments. Once the construction is complete and a occupancy certificate is issued you can claim the interest amount completely (subject to 1.50 lakhs in case of self occupied premises).

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Prasun Chandra Das (Banker) 16 June 2012

Atlast someone replied !! Thanks A V Vishal.

rajesh sharma (PM) 17 November 2012

I have bought one underconstruction flat in Mumbai but now due to my job change, I had to relocate to Delhi where I am staying on rent. Since, My property is in mumbai and not yet get the possession but I am paying interest (EMI). Please suggest can I get a tax benefit of both on EMI & HRA (in Delhi)?