An assesse received the letter depicting Temporary Permission to carry out furniture work in flat purchased subject to inter alia terms & conditions as below:
That flat is ready for occupation but we (builder from whom flat purchased) is yet to receive occupation certificate From Municipal Corporation.
Please advise whether upon receipt of such letter, the deduction towards interest paid on loan for purchase of this property can be claimed in determining the income from house property
Can you claim a tax deduction for property loan interest without an occupation certificate? Expert advice needed under Income Tax Act. An individual inquired about claiming a tax deduction for interest paid on a loan for a property purchase, despite the builder not having received an occupation certificate from the municipal corporation. One respondent suggested that deductions are applicable from the date of possession and not retroactively, while another mentioned that the builder could claim interest deductions for construction loans. Both responses indicated a need for further expert input on the matter under the Income Tax Act. (AI Summary)
TaxTMI 
TaxTMI 
