How to submit proof for Home loan Principal and Interest where EMI starts in Feb 2012

POSTED BY Deepak Singhal ON December 26, 2011 8:06 pm COMMENTS (5)

I have taken a home loan of INR 35,00,000 for which Bank has disbursed 30,00,000 on Dec 8th 2011 to Builder and rest of money will be given to builder on Jan 10th 2012 at the time of registration. I have given the starting date for EMI is Feb 5th 2012.

Could you please advice me how can get income tax exemption on principal and Interest which will be paid in Feb and March 2012.


5 replies on this article “How to submit proof for Home loan Principal and Interest where EMI starts in Feb 2012”

  1. Dear Deepak, for simplicity to understand – Even if you got possession of your house on 31st March 2012, i.e. last day of your current FY, even then you are eligible for full interest benefit up to the max. limit of 1.5L Rs.. for self occupied house.

    So for your given xase, if the interest payment till March 2012 is 110000 Rs. & you get your possession say on 15th March 2012, full 110000 Rs. are availble for set off under section 24 from your salary income for the self occupied house.



  2. deepak singhal says:

    Thanks a ton Ashal for your detailed reply. I have 1 doubt on above reply.

    1. if we are claiming unclaimed interest, would it be the part of 1,50,000 or it would be excluding the max limit of interest exemption.

    – In my case i have taken home loan of 35,00,000 in month of Dec 11, my EMI will start in Feb-12. till i have paid the intereset only. i will be getting house possession in mid of March-12. i got a provisioanl certificate from bank for the interest(1,10,000) out of which some part I paid and remaining i will be paying in coming EMI in this financial year.

    Could you plesase help me whether i can claim the intereset of 1,10,000 in this fy year however i am shifting or getting possession in mid of march-12

    Thanks in advance.


  3. Dear Deepak, in case the possession of your house comes only in the next FY i.e. after 31st march 2012, the interest paid on your home loan in the current FY i.e. 2011-2012 ‘ll be available for set off in 5 installments of 20% each adding with the normal interest of future FY.

    For example the Unclaimed Interest for FY 2011-2012 is 75000 Rs. Now you ‘ll be able to claim 15000 Rs. in addition to the interest of next FY, each starting from the next FY i.e. 2012-2013 if the possession comes in after 31st march 2012.

    Please do note if the house in question ‘ll remain self occupied, the max. interest benefit ‘ll be restricted to just 1.5L Rs. yly. No matter your actual interest payment for the FY is more than 1.5L Rs. & forget that unclaimed interest in this case. The full interest ‘ll be available for set off if the house is given on rent.



  4. deepak singhal says:

    Thanks for your reply Ashal.

    Could you please through some light on “Yes this unclaimed interest can be claimed for next 5Y @ 20% each.”

    I didnt understand the “20% each “.

    Could you please give me some example.


  5. Dear Deepak, from your query, it seems that you are asking to get income tax benefit at source from your salary income. My dear friend, you may get a bank statement from the bank mentioning the principal to be paid in the FY 2011-2012 til march 2012. It ‘ll also indicate the interest to be paid till march 2012.

    You can submit this certificate to your employer to get the benefit at source but do remember, possession of the property is primary condition to avail tax benefit on interest. In case, the possession ‘ll be available in next FY only, you ‘ll not be able to claim at source benefit for interest in the current FY. Yes this unclaimed interest can be claimed for next 5Y @ 20% each.



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