Home loan – flat purchased in one city and working in other city

POSTED BY kiranbmarathe ON February 5, 2013 1:25 pm COMMENTS (4)

Dear All,

I have purchased a flat in Pune but I am working other city, Alibag. I used to stay in Alibag.

The EMI for Pune flat is already started but the Possession is still awaiting. In this case can I get the interest benefit under section 24(b) in the this FY?

 

4 replies on this article “Home loan – flat purchased in one city and working in other city”

  1. Dear Daredevil, this limit of 1.5L Rs. for self occupied property is set by Govt. of India. Earlier it was only 30K Rs. In case of rented property, no such limit is there & one may claim full interest amount. But in this case, the rental income ‘ll be added in to the income from all sources.

    No you can not claim unclaimed interest as per your own convenience.

    Thanks

    Ashal

  2. Daredevil13 says:

    Hi Ashal,

    Why is this restriction of 1.5L only for self occupied house? Also from the first year of possession, the interest will be easily more than 1.5L. In this case is it possible to claim the unclaimed interest during construction period after a few years when the total interest outgo becomes less than 1.5L ?

  3. Dear Kiran, to claim tax benefit on interest under section 24(b), the possession of your house with you is a precondition. So within the given situation, you can not claim the benefit. Yes after the possession (possibly in the next FY), you may claim the unclaimed interest for next 5FY @ 20% each within the over all limit of 1.5L Rs. for self occupied flat./ In case you put your flat on rent, the 1.5L Rs. limit ‘ll not be there. Show your rental income & claim full interest benefit.

    Thanks

    Ashal

  4. Daredevil13 says:

    Hi,

    Tax benefit on interest component can only be claimed after possession.
    You can claim tax benefit on the principal part though (max limit of 1L under section 80C)

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