Hi Sree
I found your blog very informative so first of all congrats for imparting knowledge to others
My query is
I had a first home where I am residing for which my loan completed in 2009
After that I took another home in 2013 and loan started from Oct 2013 and EMI started from Nov 2013
I got possession in Feb 2017 , I gave rent on April 2017
Can I claim tax rebate for under under construction period from Nov 2013 to Feb 2017
Interest incurred had been almost 2 lakhs per year
Could you please break up how and under which head I can claim tax rebate
Appreciate your help
Regards,
Samant Sinha
4 Answers
Dear Samant,
Yes, you can claim the Prior Period interest in 5 equal installments..
Suggest you to kindly go through below article, can be useful to you ;
https://www.relakhs.com/under-construction-house-how-to-claim-tax-deduction-on-home-loan-interest-payments/
However, the maximum loss that one can claim has been limited to Rs 2 Lakh pa from FY 2017-18 onwards.
Kindly read :
https://www.relakhs.com/budget-2017-18-important-tax-proposals/
Hi,
1 - Your rental income is for two monthly only as the house is available for possession in Jan & Feb only.
2 - Yes. Its from FY 2017-18 onwards..
3 - ITR 2 form
4 - No.
5 - PPI is pre-EMI only.
Sree your 5th point has confused me
Whats the def of Pre-EMI
I am posing the question once again
I got home loan in oct 2013 and started paying full EMI(not Pre-EMI) from Nov 2013 and got possession in Feb 2017
I didn't claim anything during construction period
Can I claim all interest in 5 installments from from Nov 2013 till March 2016 as PPI even if I have paid full EMI(Not -Pre-EMI) + full interest April 2016-march 2017
Please clarify as I understand most of the other people have raised the same question based on Full EMI payment from very first month and not of Pre-EMI
Thanks
Samant Sinha
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Thanks Sree for your reply
Few More clarification required
1) As I got possession in feb 2016 so
Whether I will get full tax rebate
or
( tax- notional rent for complete year)
or
( tax – notional rent for 2 months)
2) 2 lakh limit will apply from FY(17-18)/AY(18-19) and not till FY(16-17) AY(17-18)
3) As I have got two home one self occupied with no income – Am I required to ITR2 or ITR 1
4) Am I required to submit any document while claiming tax rebate
5) Please reconfirm PPI includes both Pre EMI and EMI?
Thanks and Regards
Samant Sinha