Is Completion Of Construction and The Possession Of The House same thing ?

POSTED BY ravinder ON February 27, 2014 11:00 am ONE COMMENT

i have been paying pre emi for last two years. the total aggregate is approx Rs 1,29000 . the construction will be completed as stated by the company in dec2014. i am aware that i can claim for rebate against interest paid under sec 24 only on completion of the construction. do i however have to file the tax deduction certificate , which states the interest paid by me , which has been given to me by the bank along with the income tax returns for the yr 2013-14?

Secondly if the bank allows so ,is it in my better interests to start with the emi straight away on the full amount of the loan sanctioned , so that i can also start paying some principal amount? i have a balance of approx 3,25,000 still to be disbursed by the bank?lastly , does the meaning of completion of construction and the possession of the house mean the same thing?

pl do advise

One reply on this article “Is Completion Of Construction and The Possession Of The House same thing ?”

  1. ashalanshu says:

    Dear Ravinder, no, you can not claim any tax benefit in FY 2013-14, hence question of submitting any document does not arise. Yes if your cash flow permits, you should opt for full EMI to reduce your interest outgo with each passing month.

    Normally possession of the house given after getting occupancy certificate from the local municipal authorities. So completion certificate means, building is now ready for possession.

    Thanks

    Ashal

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