Hi,
Can employee claim deductions for under-construction property?
Also, Can they claim tax benefits on two home loans?
Suggestions please.
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Hi @Swati
I think No!
Deduction on home loan interest cannot be claimed when the house is under construction. This pre-construction interest can be claimed only after the construction is finished.
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Hi Swati,
You can claim the pre-construction interest in next 5 years once the construction is finished and you have taken the possession.
It is my understanding that you can claim for tax benefits on both the home loans. However someone should pitch in here. Thanks.
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The interest paid can be claimed as deduction only after the property is ready for possession. Any interest paid before possession is tax deductible in five instalments beginning from the year in which construction was completed subject to a cap of Rs 2 lakh if the property is self-occupied.
Yes… you can claim benefits on two home loans
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