Interest benefit - self occupied property

[Rahul Bagaria]

Can I claim interest benefit for self occupied property in 5 equal instalments post the possession of the house.This is possible for let out property but the Act is silent for self occupied property.

[Ravi Chopra]

Yes, you can claim the benefit of interest paid prior to possession related to that property, in five equal installments. There is no ceiling limit in case of rented property. But in case of self occupied property the limit is Rs. 1.5 lakhs.

AI Summary

Pre-construction interest can be claimed in five equal instalments, subject to a cap for self-occupied property. The operative position is that pre-construction interest for a residential property can be claimed in five equal instalments commencing after possession; this applies to interest paid prior to possession. The deduction regime differs by use: let-out properties are not subject to a monetary ceiling on such interest, while self-occupied properties are subject to a specified cap on the allowable interest deduction.