Are individuals allowed to claim deduction for under construction flat?

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  1. Poonam vij

    Poonam vij New Member

    Can a individual claim deduction for interest paid on capital borrowed for purchase of a flat which is under construction under sec 24 upto rs 200000
  2. Aditi Gulati

    Aditi Gulati Active Member

    In case of under construction property, the interest is added till the time the construction is not completed.

    And on completion of the construction, the interest is allowed as a deduction in 5 equal installments.
    Prof Bajaj likes this.
  3. somak ghosh

    somak ghosh New Member

    Plz explain the matter more clearly. For how many years a person can claim tax benefit for interest paid to housing loan.
  4. Manoj Mehra

    Manoj Mehra Active Member

    Pre-construction interest can be claimed in the next 5 years after completion.

    Post construction interest can be claimed till the time the loan is outstanding. No limit has been enforced by the Income Tax Deptt.
  5. somak ghosh

    somak ghosh New Member

    I stay at Delhi if I purchase a flat from my father at Kolkata after taking a loan from bank, can I get deduction for interest paid to bank? The question has 2 parts:-
    1) I'm posted at Delhi, can I claim deduction for loan intt if I buy a flat at Kokata?
    2) Can purchasing a flat from my father debar me from getting this benefit?
  6. Manoj Mehra

    Manoj Mehra Active Member

    1. Yes, you can claim exemption for flat purchased in Kolkatta while you are staying in Delhi
    2. The benefit would be available even if you purchase the flat from your father
  7. somak ghosh

    somak ghosh New Member

    Thank you very much. Please don't mind if I ask one more clarification. Can I get deduction for house rent paid to my landlord at Delhi in addition to rebate for paying interest to bank for purchasing a flat at Kolkata?
  8. Amit Sahni

    Amit Sahni Active Member

    Yes, you can claim deduction for house rent paid in delhi as well as deduction for home loan for house purchased in kolkatta.
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