Tax benefit of interest on home loan when construction of house takes more than 3 years

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  1. ucm

    ucm New Member

    Dear Sir / Madam

    I have taken home loan from HDFC (fully disbursed in May 2010) for construction of house and construction of house took more than 3 years. Got possession of house in Jan'15. Whether I can avail benefit of total interest paid on home loan under section 24 upto 2 lakhs or will I get benefit for Rs. 30000 only. Please clarify.

    Regards
     
  2. VAIBHAV DILIP RANE

    VAIBHAV DILIP RANE Active Member

    You can start claiming Interest under section 24(a) of the Income Tax Act, only when you get Possession of that Residence House Property.

    Eg...

    If I have taken Loan and same has been Disbursed in May 2010
    But I have got Possession in May 2014

    So I will Accumulate the Paid Interest from May 2010 to March 2014...
    If, for FY 2010-11 Paid Interest is Rs. 50,000 /- for 2011-12 is Rs. 49,000 /- for 2012-13 is Rs. 48,000 /- for 2013-14 is Rs. 47,000 /-.

    So Total Accumulated Interest is Rs. 1,94,000 /- I will divide this amount by 5, I will get Rs. 38,800 /- which I will start claiming from FY 2014-15 onwards for 5 years i.e. upto FY 2018-19.

    So if I have paid Interest of Rs. 46,000 /- in FY 2014-15...
    I will claim Rs. 46,000 + Rs. 38,800 totaling to Rs. 84,800 in FY 2014-15 (subject to maximum limit)

    ** You can also claim deduction of Principal amount repaid under section 80C
     
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