I took home loan of Rs. 7.5 Lacs in April 2012 for 7 years. I got possession of the property in April 2013.
I foreclosed the Loan in March 2015. Hence I can’t have any home loan interest exemption for FY2016/17 while computing Income Tax this year.
However, my question is related to Pre-EMI interest, which I had paid from April-2012 to March-2013. I understand, I can avail deduction of pre-construction EMI interest in five equal installments from FY2013-14 to FY2018-19. But since I foreclosed my Home Loan in March 2015, am I still eligible to claim the deduction on Pre-EMI interest while filing Income Tax Return this year?
Thank You.
3 Answers
Hi,
I believe that you can still claim the remaining prior period interest installments.
Suggested reading :
https://www.relakhs.com/under-construction-house-how-to-claim-tax-deduction-on-home-loan-interest-payments/
Thank you very much Sreekanth for the response. The article you have written is great and very much valuable.
I have used 1/5th of Pre-Construction EMI interest amount against head 'Income from one housing property' to claim the deduction. Please confirm this is right.
Once again, thanks for clarifying my doubt. You have saved some tax for me -:)
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