POSTED BY January 23, 2013 1:51 pm COMMENTS (3)ON
I bought one 1000 square feet plot in Rs. 12,00,000. For which I have taken Rs. 6,00,000 loan from Axis Bank. Currently I don’t want to build house on this. My plan is to complete this plot loan first and take another loan to build house. By that time I will also accumulate money for down payment. I will prefer SBI loan for house construction.
Currently I have been paying EMI of Rs. 8,000 since Aug 2011 and I cannot get tax benefit until house is not constructed.
My question is, once house will be constructed then can I get tax benefit of Axis Bank loan interest repayment which I will pay between Aug 2011 and Aug 2016. As per current law Rs. 1,50,000 is tax free if we pay interest for home loan.