Can I claim both pre EMI and EMI in one financial year ?

POSTED BY gopinath ON March 3, 2014 3:19 pm COMMENTS (5)

I am Dr.Gopinath. I REQUIRE some clarifications regarding a peculiar situation I am in.

I have two questions/clarification required on Tax question

1. I registered a property in May 2013 for and took a loan of Rs 38 lakhs. Since the property was under construction (in its final stage to be completed in 6-8 months) the pre-emi for loan began from June 2013 till Dec 2013. After that from Jan 2014 my EMI began as the construction was close to completion. I short my pre-EMI and EMI are with in one financial year only 2013-2014. The EMI after Jan to Mar 2014 comes around 60 thousand and my pre EMI comes to around 1.8 lakhs. Can I claim both pre EMI and EMI in one financial year is my question?

2.Second question is since I would be paying around 3 lakhs as interest in 2014-15 for home loan well above the 1.5lakhs limit of IT exemption can I claim my pre EMi installment of RS.36 thousand(20% of 1.8 lakhs) over and above the cap of RS.1.5lakhs of IT exemption in in 2014-15? I will be at a loss as my EMI Rs.3 lakhs crosses the Rs1.5 lakh limit and I also loose on the pre- emi is being split into 5 equal portions (20% each year) Kindly comment on this.

Awaiting your reply eagerly as I have to submit for claiming any tax exemptions possible.

5 replies on this article “Can I claim both pre EMI and EMI in one financial year ?”

  1. ashalanshu says:

    Dear Gopinath, as the property is not under your possession, you can not claim interest benefit be it from Pre EMI or EMI. Please wait for possession to claim any interest related benefit.



  2. nikhs12345 says:

    hello Ashal,
    my bad regarding the answer to the 2nd question. Sorry for it. there is no limit in case of let out property.

    Dr. Gopinath,
    sorry for wrong info. please ignore my answer to 2nd question.

    Any chance to edit the answer? if user can not , It will be good if you edit the part from my reply.

  3. ashalanshu says:

    Dear Gopinath, the property is under your possession or not now?

    Dear Nikhs, who said that rented property interest benefit limit is 3L Rs? Please show me the circular/source of your info. why i’m asking the proof? The reason my dear friend is, you are providing a wrong info.



    1. gopinath says:

      The property is not under possession however, since 90% of the work is completed the Bank has on my request started the EMI deductions.

  4. nikhs12345 says:

    hello Dr. Gopinath,
    You can not claim for tax exemption on home loan till you get possession. In short If your builder doesnt give you possession letter in FY 2013-14 You wont be able to get the benefits of principal, interest and pre-emi paid on your home loan.

    regarding 2nd question:
    maximum cap on interest on home loan benefit is 1.5lac if home is self occupied and 3lacs under loss from property. If your home is rented to someone you can claim for 3lac this includes interest paid on home loan and pre-emi.

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