House Loan Tax
Is interest free home loans tax exempt, even though possession of the house is not given?
I have taken a house loan from HDFC in 2009-10, but the surface will be given posseion early July 2010, although EMI has already begun. Can I claim tax exemption in the year the interest, although I have not had posseion of the apartment. Construction is 80 & over.
Pre-construction period of time between the date the loan is taken and 31 March this year just before where the property acquired, possessed or construction completed is called pre-construction period. 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 a deduction in five equal installments. The first installment is allowed as a deduction in the year in which construction or acquisition of property is completed HMT