Claiming of Housing loan interest/principal

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  1. rsridhar

    rsridhar New Member

    Dear Sir,

    I have taken a housing loan in Jan 2013 for a property under construction. The property will be completed sometimes next month and I am expecting the handing over by feb 2015 end.
    So far from jan 2013 until today, the bank has charged interest of 5,06,200 and I have paid so far a sum of 5,15,000.

    My query is while filing it returns this financial year Apr 2014 to mar 2015 how much can I claim against interest and principal under sections 24 and 80c. how do I claim the interest/principal paid during construction and after handing over period.
  2. Parul_Gupta

    Parul_Gupta Active Member

    As the construction is expected to be completed in Financial Year 2014-15 - you can claim the deduction for interest and principal repayment for the full year 14-15

    Moreover, the interest for the previous 2 years for which you have not claimed a deduction would be allowed as a deduction in 5 equal installments in the next 5 years.

    There would be no treatment of the principal amount repaid in the previous years.
  3. rsridhar

    rsridhar New Member

    Thanks madam

    Can you pls specify how much can I claim under interest and how much under principal for the numbers I have given above which is
    Say 5,06,200 is bank's interest charged as on date while I have paid 5,15,000 as on date. As I understand I can claim 5,06,200 under interest in 5 instalments while the balance amount 8800 cannot be claimed at all as this is paid before the handing over period ie during construction. Please correct me if I am wrong. Thanks.
  4. Parul_Gupta

    Parul_Gupta Active Member

    Yes, your interpretation is correct.
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