The question about, “How to claim pre construction interest?” arises because household income qualifies for a number of tax deductions, including the standard deduction, the deduction for local tax payments, the deduction for mortgage interest, and the "Pre-construction interest" deduction. These deductions enable a taxpayer to lower the amount of taxable income that is subject to taxation.
What is pre construction interest claim?
An assessee pays the interest while the residential building is being constructed, which is known as pre-construction interest.
When the house is being built, no deduction for mortgage interest can be made. It is only possible to claim this pre-construction interest once the building is complete.
Calculate your EMI on a home loan via the NoBroker EMI calculatorHow do I claim interest on home loan pre construction period?
The Income Tax Act permits pre-construction interest to be claimed from the date of loan borrowing till the end of March prior to the fiscal year in which the construction is finished.
Under which section can you claim pre-construction interest?Under Section 24 of the Income Tax Act, pre-construction interest can be claimed on residential properties that are still under development.
Is pre-EMI fully taxable?Pre-construction interest can only be claimed under the income tax laws when the building has been finished in 5 equal installments. Upon construction's completion, just the interest portion will be deducted.
I’d like to conclude my answer here about “How to claim pre construction interest?” I hope this helps:)
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How to Claim Pre Construction Interest?
Karishma
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2023-05-16T20:57:07+00:00 2023-05-16T21:14:01+00:00Comment
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