What is pre-construction interest? How do I claim it?
What is pre-construction interest? How do I claim it?
Chiranjibi Aug. 04, 2018
Pre-construction interest is allowed when you have taken a loan for purchase or construction of a house property (not allowed in case of the loan for repairs or reconstruction).
The deduction for this interest is allowed in 5 equal installments starting from the year in which the house is purchased or the construction is completed.
In other words, pre-construction interest deduction is allowed for interest payments made from the date of borrowing till March 31st before the financial year in which the construction is completed.
The interest after 31st march can be claimed under section 24 upto the limit of Rs lakhs.
