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Asked by namish on :Jul. 05, 2018

Hi everyone….I started constructing a house in 20…

Hi everyone….I started constructing a house in 2016-17. It is expected to complete by November 2018…

Hi everyone….

I started constructing a house in 2016-17. It is expected to complete by November 2018. Am I entitled for deduction? If yes, how much deduction can I claim for the interest paid on house loan this year?

0

Jeeba Jul. 05, 2018

You can not claim a deduction for the interest paid on house loan yet.

Pre-construction interest shall be allowed as a deduction in five equal installments after the construction of a house is completed.

You can claim the deduction of pre-construction interest in 5 equal instalments from the year of completion of construction apart from the regular interest claim.

Since your house is under construction, you have to wait until the completion of construction of a house.

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