Tax saving on home loan related exemptions - help needed

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  1. Nitin G

    Nitin G New Member

    I have some questions, it will be very helpful if you could help me:

    I have just availed home loan this year in July for 40L. Property is under construction and is to get completed by Mar or April 2015.

    Stamp duty, ST, processing fees, Mortgage charges, etc all has been paid.
    EMI will start from 5-sep-2014

    Which claims can I do this year FY 2014-15 (AY 2015-16) to pay lowest tax?

    -Can I claim the Stamp Duty and ST this year? If no, can I do it next year?
    -Can I claim full interest paid (as part of EMI) for exemption under 24B?
    -Which other claims can or cannot be done ?

    I have read many articles, but I am confused. Some articles say I can claim SD/ST, some say I cannot. I am in a fix.
  2. Parul_Gupta

    Parul_Gupta Active Member

    You can claim the following deductions this year:-

    1. Deduction under Section 80C for the Stamp Duty paid.
    2. Interest paid cannot be claimed as a deduction for under construction property. So the interest paid by you before completion would be added and allowed as deduction in 5 equal installments from the year of completion.

    Therefore, if it gets completed before 31st Mar 2015 - you can claim the deduction for this year itself. However, if it gets completed - after Mar 15, it will be allowed to be claimed as a deduction in 5 installments.

    3. Service Tax on under construction building cannot be claimed as a deduction.
    anveshcif likes this.
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