Is interest exemption on housing loan tax exempted even if possession of house is not given ?

I have taken an house loan from HDFC in 2009-10 but the flat will be given posseion only in July 2010, although EMI has already commenced. Can I claim tax exemption in this year on the interest, though I have not got posseion of the flat. Construction is 80& through.

3 Replies to “Is interest exemption on housing loan tax exempted even if possession of house is not given ?”

  1. unless you take possession of the res property or property is registered in your name you cannot claim deduction. However, the int. paid during pre construction period can be capitalized. Sec. 24 of income tax act is very clear in this regard.

  2. Pre-construction period

    The time between the date on which loan is taken and 31 March of the year immediately before which the property is acquired, possessed or construction completed is called the pre-construction period.

    The interest paid or payable in the pre-construction period is not available as a deduction in the year of payment of interest but it is available as deduction in five equal instalments.

    The first instalment is allowed as a deduction in the year in which construction or acquisition of the property is completed


  3. Ultimate Lenders.
    14 Cabot Square,Fulham,
    London,United Kingdom
    Tel Num: +447045723089.
    Email: [email protected]


    Regarding your question, we are a fully registered and certified loan agency based in United Kingdom that offers loan and other kind of financial services, at 3% low interest rate, within a maximum of 3 working days, to all genuinely interested individuals across the globe.

    NB: Even if your bank have refused to grant you a loan because of your low credit score, we are willing to help you. Come and get a very genuine loan, from a very genuine and reliable source, and put a final stop to all your financial needs.

    If interested in our financial services, you are to contact us via e-mail:[email protected] and get back to us with the loan amount needed, loan duration period, country, state, annual income,age and sex.

    And you will forever remain glad you did.

    Mode of Payment:
    * Payment by bank to bank transfer
    * Payment by bank certified check(courier)
    * Western Union Money Transfer
    * Money Gram
    Mr. Frank Smith
    Loan Managing Director
    UltimatelendersInc.COPYRIGHT © 2009 ALL RIGHT RESERVED

Leave a Reply

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

1 × four =