Construction of property before 3 years of completion of Loan sanction.

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  1. Bipul Talukder

    Bipul Talukder New Member

    "As per the norms of the taxation for house building loan ,the interest portion can be claimed as a deduction u/s 24 up to a maximum of Rs. 2 lakhs for self-occupied property. In case the property is not self-occupied then there is no limit on amount of deduction. Interest deduction comes down to only Rs. 30,000 if the construction of the house property for which the loan is taken does not get complete within three years of financial year in which loan was taken.

    Section 24 explicitly states that interest on loan can be claimed as a deduction only after the construction of property is complete. Interest deduction for pre-construction period can be claimed once the construction is complete. The entire interest amount for the pre-construction period can be divided into 5 equal instalments and claimed equally over a period of five years."
    With reference to the above rules of taxation I wants to intimate that I have brought a property on May 2014. I have also taken the benefits of tax deduction for the interest paid. Now, I intends to renovate my property with extra loans and the construction will be completed within 3 years of Sanction of my previous house building loan. Please advice me the rules which will be applicable for me with respect to tax deduction.
     
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