Came across this nice article that has very good information on,
Home Loan Interest Payment and Tax Exemptions in India.
1, 50,000 limit for Interest Amount Exemption is applicable for both regular Interest for the current FY and (1/5)th of the pre-construction Interest (till the end of FY prior to occupancy).
So you can maximize the tax exemption benefits if you get possession by the month of March in any FY. If you are a salaried person, it means you need to do lot of paper work at the time of filing returns in July and claim Income Tax refunds.
Home Loan Interest Payment and Tax Exemptions in India.
1, 50,000 limit for Interest Amount Exemption is applicable for both regular Interest for the current FY and (1/5)th of the pre-construction Interest (till the end of FY prior to occupancy).
So you can maximize the tax exemption benefits if you get possession by the month of March in any FY. If you are a salaried person, it means you need to do lot of paper work at the time of filing returns in July and claim Income Tax refunds.
