Table of Contents
- 1 Can we claim principal on housing loan for under construction property?
- 2 Can I claim stamp duty as a tax deduction for under construction property?
- 3 Can I claim HRA and home loan for under construction?
- 4 Is construction loan eligible for tax exemption?
- 5 How do I get tax exemption for under construction property?
- 6 Is interest during construction tax deductible?
- 7 Can we claim interest on housing loan for two houses?
- 8 Can you claim interest during construction?
Can we claim principal on housing loan for under construction property?
Pre-construction interest is the interest that an assessee pays while the residential house is under construction. Deduction on home loan interest cannot be claimed when the house is under construction. This pre-construction interest can be claimed only after the construction is finished.
Can I claim stamp duty as a tax deduction for under construction property?
– Yes you can avail the deduction of stamp duty and registration fees in the F.Y. Deductions shall not be provided for the principal repayments before construction. Only Deduction of interest payments shall be available under 5 equal installments starting from the year of completion.
Can we claim principal amount of housing loan before possession?
Shubham Agrawal, Senior Taxation Advisor, TaxFile.in says, “Yes, the principal portion of the EMI paid for the year is allowed as deduction under Section 80C in the year of payment. The property should not be sold within five years of possession.
Can I claim HRA and home loan for under construction?
If you own an under-construction property while claiming HRA, you can claim the home loan interest paid on such property after getting possession of it. You can even own a house and rent another in the same city, and claim both HRA and home loan benefit.
Is construction loan eligible for tax exemption?
Under Section 24 of the Income Tax Act, you can claim deductions on the interest component of your home construction loan. In the case of self-occupied property, the maximum deduction allowed is Rs. 2 lakhs. Before taking a loan to avail this exemption, it is ideal to calculate your home loan eligibility online.
Can you claim construction loan interest on taxes?
Yes you can deduct the interest on your construction loan if the loan was secured by the property you moved into. You can treat a home under construction as a qualified home for a period of up to 24 months, but only if it becomes your qualified home at the time it is ready for occupancy.
How do I get tax exemption for under construction property?
Tax deductions on under construction property Suppose you buy a property that is being constructed and are currently paying the EMIs for the loan. In that case, you can claim tax deduction on the principal amount (up to Rs. 1.5 lakhs) under section 80C of the ITA.
Is interest during construction tax deductible?
A: As long as your intention and purpose when building the new investment property is to derive assessable income (rent) from it when construction is completed within a reasonable timeframe, then the bank interest on the loan is tax deductible while the property is under construction.
Can I claim both rent and home loan simultaneously?
One can claim HRA exemption as well as the deduction for interest on a home loan if one owns a house but lives in a rented house. Both these tax deductions are allowed only if the house one owns and the house one lives in are at different locations and there is a genuine reason for not living in one’s own house.
Can we claim interest on housing loan for two houses?
Amit Maheshwari, Partner, AKM Global replies: In case you intend to claim both properties as self-occupied, then benefit of interest deduction is restricted to Rs 2 lakh each for co-owners in a year. This limit shall be aggregate limit for all self-occupied properties.