I have purchased a house which is in construction and now I am paying pre emi. Is pre emi tax exempted or not.?



I have purchased a house which is in construction phase and it will complete in 2010 and now I am paying pre emi. Is pre emi tax exempted or not

Rate these answers

3 Replies to “I have purchased a house which is in construction and now I am paying pre emi. Is pre emi tax exempted or not.?”

  1. You can take deduction for principal amount under section 80C.
    You can not take deduction for home loan interest until the contruction is complete. Then you can claim deduction in 5 years.
    For home loan interest deduction under section 24(b) and capital deduction under 80C, read http://mytaxes.in/index.php?topic=9.0.


  2. Pre-EMI is not eligible for exemption till you take possession of the house i.e. after receiving an O.C. In that year one-fifth of the Pre-EMI will become eligible along with the regular EMI. Pre-EMI can be claimed one-fifth for 5 years.

    HMT






Leave a Reply

Your email address will not be published. Required fields are marked *