Is obtaining posession necessary to claim interest on housing loan as expense for income tax purposes?

Answer 1

If you get the pocession in the same financial year then intrest amount will be directly deductible from your taxable income.
If you get pocession later then intrest paid before pocession's financial year will be deducted in next 5 years.
For example : Assume your taxable income is 'T' every year
1. If you are getting pocession in Jan 2007 and you are paying intrest of Rs 'x' this year, then your taxable income for 2006-2007 year will be Rs (T - x)
2. If you are getting pocession in Apr 2007 and this yr you have paid intrest Rs 'x' per then in 2006-2007 you wouldn't get any benefit but in subsequent next 5 financial years ie 2007-2008, 2008-09, 2009-10, 2010-11, 2011-12 your taxable income will be reduced by x/5. Again there is a catch that total intrest in any financial year eligible for deduction cannot be more that Rs 1,50,000

Answer 2

Dear Friend,
As per the Income Tax Act,1961, the interest on the loan, taken for the purchase or construction of the house property is eligible for deduction u/s 24 from the head "Income from House Property" of the gross total income of the assessee. The deduction is available only after taking posession of the house. The interest paid by the assessee till the posession is capitalised. Then this capitalised interest paid is allowed as deduction in 5 equal yearly installments together with the interest paid for that current year startin from the year you take possession of the house. The interest paid till the 31st March of the year previous to the year you take posession of the house is capitalised for the aforesaid purposes.



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Answer 3

you could deduct the interest on a loan for a accepted or 2d place of abode. you could by no ability deduct the crucial. you additionally can deduct the advert-valorem components taxes paid. you could desire to itemize deductions to get any earnings from the residing house loan interest and components tax deductions. If the totals are decrease than your common deduction ($5,350 for single or $10,seven-hundred for Married submitting at the same time) then it is not worth claiming it.

Answer 4

Yes

Answer 5

No, It is sufficient if you are the owner and paying the interest from your taxable income

Answer 6

Yes, I believe so.