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Mahesh (clerk)     20 February 2011

IT Loss due to house possession delyed beyond 3 years


I booked a flat in Dec 2007 and home loan for the same from bank HDFC. The loan tenure is 20 years. The loan disbursement/date of cheque from hdfc to builder was made on 23 jan 2008. The builder had commited to give possession by march 2010 in the allotment letter. But possession has not been given till date.

As per my knowledge home loan rebate (1,50,000 on interest and 1,00,000 on principal) can be claimed only on if and only if posession is taken within 3 financial years of loan disbursement. Please correct me if I am wrong.

If what i wrote above is correct then if i don't get the possession before march 2011 (end of financial year 2010-2011) then I can never claim any rebate any time in the future. Is this correct?

Now my earning come in the 30% bracket and loss due to inelegibility come to Rs.45,000 per year (30% of 1,50,000).

Since this loss is due to delay in possession (original date of possession is March 2010) can I file a case against the builder in the consumer court to claim the loss (Rs. 45,000 * 17 years = Rs.7,65,000). In the above calculation 17 years is period for which I am inelegible to claim rebate due to delay in posession.

Please advise.


 5 Replies

A V Vishal (Advocate)     20 February 2011

Possession has nothing to do with the ineligibility of interest & principal repayment, you can still claim the eligible interest & principal repayment

Mahesh (clerk)     20 February 2011

According to the rule given in the government website the rebate could be claimed only if the posession is taken 3 years from the date of borrowing. tax act/24.asp

A V Vishal (Advocate)     21 February 2011

I don't find the word possession in the link you have sent. It say acquisition, which you have already acquired by entering into the necessary legal agreements. Hence, possession is not important according to my view.

shrikant chede (law officer)     21 February 2011

Agree with Vishal sir's veiw

Mahesh (clerk)     21 February 2011


Thanks Vishal sir for your time. I hope the word acquisition means just purchase and not posession.

thanks gain.

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