Loss from house property and deduction limit of 30,000

[Guest]

Hi All,

I've a query on home loan taken for under construction apartment.

+ Home loan for an under construction apartment
+ Loan sanctioned month-year : Sept-2014
+ First disbursment month-year : Oct-2014
+ Occupancy Certificate to the project by government : August-2017
+ Apartment registration : Planning to do in FY 2018-2019 (i.e. after 1-April-208)

I understand that there is a clause in Income Tax where if under construction property is not completed within 3 years (from the end of the financial year in which loan was taken) then one can claim maximum INR 30,000 under 'Loss From House Property'.

Just wanted to check this clause is applicable in my case too since apartment got OC from the government (so construction is completed in principle) but apartment will not be in my name within three years from the end of the financial year in which home loan was taken.

Any insights would be helpful

Thanks,
Milind

[DR.MARIAPPAN GOVINDARAJAN]

In my view it is applicable.

AI Summary

Loss from house property deduction limit applies where an under-construction dwelling exceeds the prescribed completion period despite occupancy certificate. The taxpayer financed an under construction apartment with a loan sanctioned in September 2014, first disbursed October 2014, obtained an occupancy certificate in August 2017, and plans registration after the three year completion window; the question is whether the loss from house property deduction cap applies when occupancy is obtained but registration occurs after the prescribed completion period, and the reply asserted that the limiting provision is applicable.