Hi, I have taken up a Home Loan from HDFC for a flat which is still under construction. I started paying the EMIs from August 2006. The possession of the flat is due in December 2007. My query in this regard is: Am I entitled for tax exemption on the interest and/or principal paid by me for the period from August 2006 thru December 2007? If no, which component (interest or principal repayment) can I claim for as tax exemption. If I am not entitled for tax exemption at all then what is the way out?
Please help me out. Thanks a lot for your help in advance.
RE:Regarding home loan
by keshavan iyyengar on Apr 20, 2007 10:18 PM Permalink
you can claim the interest on loan prior to december07 in 5 equal instalments. From dec07 full interest can be claimed. principal repayment for f.y.2006-07 can be claimed. anand
RE:RE:Regarding home loan
by mickey malhotra on Apr 21, 2007 06:11 PM Permalink
principal repayment cannot be claimed until u take possession of your flat however you can claim exemption on 150000 (upperlimit) on the interest component.
