I have accupeid my flat in dec. 06. Can I claim entire EMI paid from April 06 to Mar 07for the income tax calc

Question

My accountant told me that i can only claim EMI paid from december 06 to March 07 and 20 % of sum of interest paid during march 06 to november 06.

Answer 1

No. You cannot claim EMI paid between April '06 to Nov' 06. Your EMI will be considered for tax benefit only from the date you move into your new house. Hence, you can claim only for the EMI's paid during Dec '06 to Mar '07 for the financial year 2006-2007.

More info available on
http://inhome.rediff.com/money/2005/jan/27perfin.htm
http://www.incometaxindia.gov.in/

Answer 2

U cant claim the EMI paid till Nov 06. Only from the date which u occupied the flat, only that EMI u can claim. For the previous EMIs, the interset part paid by u can be claimed.

Answer 3

I am semi qualified chartered accountant

that 20% portion was called as prior period interest

the defination for prior period in indian income tax law is the period prior from the financial year in which the property acquired of occupied. it means in ur case it is march06 and before.

the emi paid by u from apr'06 to mar'06 is eligible for calculation purpose.


note :

the entire emi cannot be get deducted only the interest portion can be deducted and the principal portion has some limit , i think it is RS.20000/=.

and IMPORTANT NOTE

donot get these type of advice because the person who answer may be not having knowledge, and he provide answer simply based on knowledge. so get advice tax people like us. and it is better to get advice personly not thro these type of risky advice, even though u have to pay it, because is worthy to pay money to get valuable and correct advice.

Answer 4

Benefit of repayment of housing loan is admissible only after taking possession of the house and not prior to it.Pls refer to statutory provisions on the link below:
http://www.allindiantaxes.com/income-tax-income-tax-act.php
Further, you may not be allowed benefit of interest payment.

Answer 5

er?” or “Any Mumbaik

Answer 6

no