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How to claim benefit of loan interest for under construction house
Video Link - https://www.youtube.com/watch?v=Lbw7AkJRD_c I am having a doubt. Suppose i have taken a under construction flat and it took more than three years (say 4 years) to complete it and in the previous 4 years say i have given 6 Lakhs as interest, then how can I get benefit in tax for the interest paid during these years. And how can I file it on the income tax website?
Thank you for ur noble effort.
Solution - By Amlan Dutta
Say you , bought the house in 2010 - 11 and the ready for possession only in 2015 -2016 ....but in years 10-11,12-13,14-15 you paid interest on loan 6 lacs ...your question is how do you get the benefit of this interest paid ...firstly , in each of this years , you cannot take benefit of interest u/s 24 (b)and principal u/s 80 C...the year you get possession i.e 2015 -16 , that year , you can claim benefit of paid interest in 1/5 of installement i.e 1.2 lakhs ...this besides , the interest paid in this year 2015 16 (however note that sum total must not exceed 1.5 lacs , if the house is self occupied )...if the house is let out , then there is no upper limit to the interest benefit taken ........you will do this for the each of the 5 years because you are distributing the benefits over 5 years ......how will you put it in return ...simple , if it's just 1 house , you can do it in ITR 1 ....income from SOH (self occupied house ) is loan interest (restricted to 1.5 lacs )....and income from let out house is (NAV - std deductions where std deduction is (1) 30 % of NAV and (2) INTEREST paid ...NAV is net annual value arrived at rental income - municipal taxes paid ....i will see if i can make a tutorial for you !peace .....amlan
