Comments on: How You Can Benefit From Home Construction Loans

By: HMT

HMT — Tue, 09 Mar 2010 04:41:59 +0000

The interest that you are paying is called Pre-EMI. After disbursement of full loan amount you will pay actual EMI. The Pre-EMI becomes eligible for tax exemption only after you receive a completion certificate from the municipality. Then you can claim tax exemption on Pre-EMI in 5 equal installments, for the next 5 years.
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By: Jss

Jss — Tue, 09 Mar 2010 04:39:59 +0000

In India on your India tax return, you can not deduct interest during the construction period. When the construction is complete, you can deduct the pre-construction interest in 5 years.
Read http://mytaxes.in/index.php?topic=9.0
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By: Naveen B

Naveen B — Tue, 09 Mar 2010 04:37:59 +0000

Hi
Yes, definitely you will get the tax benefit for the interest amt. You can claim yearly benefit for the interest paid in the same year. You have to get the interest certificate from the bank.

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By: razzyan n

razzyan n — Tue, 09 Mar 2010 04:35:59 +0000

hi dude...yes you will get full rebate of interest
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By: rtmurugan

rtmurugan — Mon, 08 Mar 2010 23:33:08 +0000

can I get tax benefit for the interest amount I paid for home loan and the house is under construction ?
I am constructing a house on home loan from nationalised bank. The house is under construction. I am paying only the interest now for the 1st installment amount released by the bank. can I get the tax benefit for this interest amount?. When I can get the full tax benefit?