SAVE TAX FROM HOUSE LOAN & INCOME FROM HOUSE LOAN

 

INTEREST ON PRE-CONSTRUCTION PERIOD  - 

DEDUCTION WILL BE ALLOWED ONLY AFTER THE CONSTRUCTION OF THE HOUSE PROPERTY.

 

PRE-CONSTRUCTION PERIOD MEANS :- 

STARTING FROM THE DATE OF BORROWING AND ENDING ON 31^st MARCH PRECEEDING THE PREVIOUS YEAR IN WHICH CONSTRUCTION IS COMPLETED.

INTEREST PAID ON PRE-CONSTRUCTION PERIOD CAN BE CLAIMED IN 5 EQUAL INSTALLMENTS STARTING FROM THE PREVIOUS YEAR IN WHICH CONSTRUCTION IS COMPLETED.

 

AFTER CONSTRUCTION FULL INTEREST CAN BE CLAIMED IN THE PREVIOUS YEAR IN WHICH IT IS PAID.

 

IN THE PREVIOUS YEAR IN WHICH CONSTRUCTION IS COMPLETED FULL INTEREST FOR THAT PREVIOUS YEAR CAN BE CLAIMED AS A DEDUCTION.

 

FOR  EXAMPLE:-

 

DATE OF SANCTION OF HOUSING  LOAN        -        07-10-2020

DATE OF COMPLETION OF CONSTRUCTION   -        01-01-2022

PRE-CONSTRUCTION PERIOD WILL BE    -        07-10-2020 TO 31-03-2021

INTEREST FOR THE PRE-CONSTRUCTION PERIOD              -        50000/-

THE ELIGIBILITY WILL BE AS FOLLOWS:-

INTEREST ON PRE-CONSTRUCTION PERIOD OF RS. 50000/- WILL BE CLAIMED IN 5 EQUAL INSTALLMENT STARTING FROM THE F.Y. 2021-22 & ENDING ON THE FINANCIAL YEAR 2024-25

 

REPAYMENT OF PRINCIPAL AMOUNT CAN BE CLAIMED AS A DEDUCTION U/S  80C IRRESPECTIVE OF PRE OR POST CONSTRUCTION PERIOD.

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