Income Tax Deduction for Loan taken for Plot

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  1. Rajesh Kotra

    Rajesh Kotra New Member

    Respected Sirs,
    Is loan taken to purchase a residential PLOT be treated as HOME LOAN? Can we get benefit of Section 80 C and Section 24 of Income Tax for Deduction of Principal Amount and Interest Amount on such loan?
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, you can claim deduction for Home Loan taken for a Plot because you can anyday construct a House on the Plot
     
  3. Rajesh Kotra

    Rajesh Kotra New Member

    Thanks Gaurav_kumar, Can I claim deduction only after construction is started on the plot or after completion of Construction or without initiating construction?
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Better to claim deduction once the construction has started.

    In case you dont intent to start construct anytime soon, you can simply construct a small room and treat it as a house and start claiming deduction.
     
    Rajesh Kotra likes this.
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