It is not possible to get tax rabate on loan for purchase of plot. But if I later build a house on that plot -

Question

will I get the tax rebate on the whole amount of purchase, i.e., Plot price + house contrcution price?

Answer 1

You can capitalize the interest (add interest paid on the plot loans to the cost of the plot). When you construct a house on it, then your cost of the house will go up including the interest paid on the plot loan. It will be helpful when you sell the house.

After completing the house on that site/plot with a loan for construction of house, then you can claim upto Rs.1,50,000 per year on the interest paid on the housing loan and you can claim upto 1 lakh per year on the Principal amount repayment ( Sec.80c).

Answer 2

No you will not get any rebate for the interest paid or repayment of principal on the purchase of vacant plot of land.
You need to build a house on it to claim tax benefit u/s 16 .
Do remember that you will not get benefit for the same untill your house is fully constructed or is complete.
You can always capitalize the amount of interest paid on the loan for both the loans.

For more tax related queries contact me at [e-mail]

Answer 3

If u r granted housing loan for the event, u can claim tax benefits.

Answer 4

only if you rewrite the loan to include the house and lot, which the bank will make you do anyway, as they willonly loan on a complete property. Lots by themselves are usually cash only or 50% loan at most

Answer 5

i'm conversing approximately basically IT Act. in accordance to section 24(Deductions from income from domicile supplies) it relatively is written that basically Intt. on borrowed loan for purchase of /shape of/fix of supplies is admissible as deduction. I repeat it relatively is barely activity quantity. even however Installment isn't Deductible. it is likewise shown that any expenditure incurred on Stamp accountability or Registration of the employ deed isn't deductible from the each year fee of the domicile supplies. Sir, you won't be able to declare deduction for registration fee for loan of domicile plot to acquire loan.

Answer 6

ya but u should do it with in the time they have given otherwise u wont get any rebate