How to claim for loss of under construction property

[Himanshu K]

I am a salaried and had booked a under construction Flat in year 2010, on Bank Loan which got canceled in Jan 2014. Please find the details about the losses below

Reason of Loss : My under construction Flat was canceled by the builder.

Amount of Loss : Approx 4 yrs of EMIs (i.e. Interest + Principal Amount) paid to the Loan provider Bank.

Please let me know if you could help me to get proceed with either of below options

a) Refund of Tax paid in last 4 years by resubmitting the previous year ITRs (I couldn't find where I should mention this loss amount in ITR-1 form)

or

b) consideration of loss amount in current year's Tax calculation. ( I couldn't find under which section I can declare these losses as Section 24 and 80C says for possessed house only.)

Are there other options to leverage IncomeTax benefit over the incurred losses ?

Kindly let me know whether a salaried person could meet with a loss or not ?

If yes, I believe that there must be a way out to project such losses as per Guidelines for Income Tax Laws.

Please suggest, as its a huge financial loss to me for time, amount, value, price appreciation and emotional also.

Thanks

AI Summary

Individual Seeks Tax Benefits for Losses on Canceled Flat; Questions Amending ITRs or Current Year Deductions A salaried individual sought advice on claiming tax benefits for losses incurred from a canceled under-construction flat, financed through a bank loan. The individual paid approximately four years of EMIs before the cancellation in 2014. They inquired about options to either refund tax paid over the past four years by amending previous ITRs or consider the loss in the current year's tax calculation, noting the difficulty in declaring such losses under existing tax sections. The individual expressed the financial and emotional impact of the loss and requested guidance on leveraging tax benefits. A respondent asked if the issue was resolved.