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.

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

    HMT


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