can i take income tax rebate on house loan during the period the house in under construction.?



I am told tax rebate can only be taken when house is ready for use or flat when possession is taken

can i take income tax rebate on house loan during the period the house in under construction.?
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4 Replies to “can i take income tax rebate on house loan during the period the house in under construction.?”


  1. once your EMI for house loan started, the principal amount in the emi paid during the financial year can be reckoned for IT rebate purposes apart from the interest portion up to certain limit.


  2. For interet I can say no you can not claim interest on house loan if house is not completed by end of financial year . this is as per section 24 of the income tax act . pre construction interet can be claimed in 5 equal installment starting from year in which house is completed .

    for principal also I have same opinion that if house is not completed you can not claim deduction u/s 80 C

    http://www.simpletaxindia.org/2010/02/house-property-income-at-glance-income.html


  3. Your information is correct. you can not avail the benefit of home loan payment before possession. after possession you can claim your intt part in five equal installment. There is no benefit for principal payment.

    Tulsi Gupta





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