80C Benift on Home Loan on Under Construction Property.

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  1. Vijendra Singh

    Vijendra Singh New Member

    I am 30 years old and took the Home Loan in April 2013 and property is under construction is there any Tex saving benefit on prepayment amount or on EMI on paid principal amount?

    Please tell me in detail on the Home Loan tax saving benefit if possible.

    Thanks in advance.
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    In case of under construction property, the interest paid till the time the property is completed would be aggregated and allowed as a deduction in five equal installments.

    No treatment for repayment of principal amount of loan till the time the property is not completed.
     
  3. Vijendra Singh

    Vijendra Singh New Member

    So, there is no any tax saving benefit on prepayment of principal amount in under construction property.
    What is the deduction in five equal installments??
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Deduction in 5 equal installments means that the Interest on Home Loan before completion of the construction is Rs. 1,00,000 - then you can claim this as a deduction after completion of construction in 5 equal yearly installments i.e. you can claim Rs. 20,000 as a deduction every year.
     
  5. Vijendra Singh

    Vijendra Singh New Member

    The amount Rs. 20,000 is separate from the 2 lac which is applicable after completion of construction from Home Loan??
     
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