Taxation on House Loan of Under Construction Flat.?

Question

Hi All,

I took 14 lacks of Bank loan for flat which is under construction. Construction will complete in next 6 months.

10 lacks of amount has released till now and started paying EMIs to Bank.

Working in Software Company and my Finance admin is not considering this EMI for IT exemption. He is saying that, the EMI paid for under construction flat can not consider for IT. EMI will be considered once flat is occupied by us.

The EMI what we paid till completion will be took for IT in next 5 years in equal parts (i.e., totalEMI/5 per year).

Please clarify this is correct or is there any way to show this EMI right now in my Tax.

Thanks in advance.

Answer 1

Home loan interest deduction is available only from the year the construction is complete.

The principal can be deducted under section 80C that has a cap of Rs. 1 lac.

Read http://mytaxes.in/index.php?topic=9.0