TAX TALK-07.12.2015-THE HITAVADA TAX TALK CA. NARESH JAKHOTIA Chartered Accountant Housing loan & tax treatment of pre-construction period interest Query 1] I have booked flat in under construction project in pune, costing Rs. 52 lacs. The possession is expected in Nov. 2017. Now my question is whether the amount paid to the builder through bank loan (Principal and Interest) before the actual possession of the flat is eligible for tax exemption? If yes, how could I claim the Refund of the said amount? [ narayan.parjane@gmail.com ] Opinion : Housing loan offers tax sops. Interest paid on amount borrowed for purchase/construction of house is eligible for deduction u/s 24(b) of the Income Tax Act-1961 up to a maximum of Rs. 2 Lacs p.a in case of self occupied house property. Earlier, there was a max cap of Rs. 1.50 Lacs which is enhanced to Rs. 2 Lacs by the Finance Act-2014 (for the FY 14-15 & onwards). Additionally, principal...
