80EE(1) and first under-construction property

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  1. Lovelyy

    Lovelyy New Member


    I have bought one flat for 55L in FY 2014-2015 which is under construction as of today and construction completion and possession is expected in FY 2017-2018. Only sale and construction agreement with builder is signed.I am paying pre-emi interest only. I have not claimed any interest for this flat in ITR as i can't by IT rules till construction completes.

    Now i have bought another 30L "ready to move" property in May-16 via home loan of 24L (approved in FY 2016-2017) and i am occupying it. Can i claim 50000 INR interest paid for this flat under section 80EE(1) along with 2 L interest claim in section 24B? Can i consider this as my first home as other one is still under-construction and cannot be occupied. If 50000 in 80EE(1) cannot be claimed , can i claim 2 L in sec 24b atleast for this one?
  2. ZED

    ZED Well-Known Member

    You can claim deduction u/s 24(b), subject to fulfilments of its conditions. Deduction u/s 80EE(1) would be available if the interest is to be paid, over and above the amount allowed u/s 24(b).
    There shall be no double deduction.

    For upto 2 Lacs, you may claim u/s 24(b)
    Thereafter, upto 50,000 can be claimed u/s 80EE(1)

    Conditions to be satisfied in order to claim the deduction u/s 80EE(1) are-:
    (i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2016 and ending on the 31st day of March, 2017;
    (ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed thirty-five lakh rupees;
    (iii) the value of residential house property does not exceed fifty lakh rupees;
    (iv) the assessee does not own any residential house property on the date of sanction of loan.

    You did not own any other residential house property at the time of sanctioning of the loan and hence can claim the deduction.
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