3 years clause for Construction of Property on Loan

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  1. Ruchita Datta

    Ruchita Datta New Member

    Dear Sir/Madam,
    I have availed a home loan which got sanctioned in Apr-2012. First disbursement got done in FY 2012-13.
    I am paying my full EMI since the beginning. But I have not yet received the possession of my property.
    As per Section 24 of the Income Tax Act, tax deduction for payment of Interest shall be available only if the construction is completed within 3 years from the end of the financial year in which the capital is borrowed.

    I want to understand for my case, what would be considered as within 3 years from the end of the financial year given that my loan got sanctioned in April 2012 - would it be April 2015 or April 2016 ?
     
  2. rudrabose

    rudrabose Active Member

    Your loan got sanctioned in FY 12-13.

    3 years would be counted from the end of FY 12-13 i.e. from 31st Mar 2013.

    3 years from 31st Mar 2013 would be Mar 16.
     
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