As a financial expert, I can tell you is pre emi interest exempt from tax. In India, the interest paid during the pre-EMI period of a home loan is eligible for tax exemption under Section 24(b) of the Income Tax Act, similar to Full EMI interest payments. However, there are important conditions and limitations to claim this deduction, which I added below.
What is Home Loan Pre Emi Interest Tax Exemption?
Section 24(b) Deduction: You can claim up to Rs 2 lakh per financial year on interest paid for a self-occupied property (Rs 30 lakh for let-out properties). This applies to both Pre-EMI and Full EMI phases.
If the property is under construction, the Pre-EMI interest can be claimed in five equal instalments starting from the year the construction is completed, along with the current year’s interest.
Unlike Full EMI, Section 80C benefits (up to Rs 1.5 lakh) on principal repayment are not available during the pre-EMI phase since only interest is paid.
If you are in a higher tax bracket and need to maximize interest deductions, and if the property is under construction, allowing staggered tax claims post-completion, you should opt for pre EMI.
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Is Pre EMI Interest Exempt from Tax?
pragati235
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2025-06-17T14:46:18+00:00 2025-06-17T14:46:20+00:00Comment
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