Hi, I have taken a home loan for a new apprtment. But the possesion of the appartment is after 10 months. My EMI started now itself and I am paying both the Interest and Prinical. Can I avail the Income tax rebate on both Principal and Interest even though the appartment is not fully constructed.
RE:Home loan query
by Ram on Apr 26, 2005 11:49 AM Permalink
I don't think so. You can claim the benefit only after you get the completely constructed house. Till then, yes you will pay the EMIs, but later you can claim the benefit for all the EMIs that you had paid.
RE:Home loan query
by Krishna on Apr 26, 2005 03:56 PM Permalink
No you cannot claim rebate for either the prinicipal or interest component unless the construction of the property is complete. Amount paid towards principal and the interest during a financial year in which the construction is STILL in progress can be claimed over 5 additional instalments over the next five financial years. For example if you pay Rs. 20,000 towards the principal and Rs, 120,000 towards interest, you can claim rebate for Rs. 4,000 towards principal and Rs. 24,000 towards interest during the next 5 financial years in additional those years' respective interest [Subject to a Max of Rs. 150,000] and prinicipal [Subject to a Max of Rs. 100,000] payments.
RE:Home loan query
by Shekhar on Apr 26, 2005 03:04 PM Permalink
Hi, As soon u start pay ur EMI, u get tax rebate on principal &interest amount, even if the possesion is after 10 months. for tax rebate, get income tax provisional certificate from the bank where u have take loan and submit that to ur hr.
