TaxTMI 
TaxTMI 
My wife booked a flat in Ashiana Utsav Bhiwadi in March,2006. The flat is under construction and possession is likely to be offered in March,2008. She raised a loan of Rs.15.95 lacs for this flat from HDFC in Apri,2006. She is regularly paying her EMI"s since May,2006. Kindly let me know if she can claim the benefit of repayment of Principal and intt under section 24 (Loss on house property) for the F.Year 2006-07 and F.Year 2007-08
Benefit under section 24
23 Feb 2008 
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Pre-construction interest deduction may be claimed in five equal installments from year of possession, principal deductible under 80C thereafter.
Pre-construction interest accumulated until acquisition/completion is deductible in five equal annual installments starting in the year of acquisition or possession; interest paid in the year of acquisition/completion is deductible that year as loss from house property within the applicable ceiling. Principal repayment is deductible under the principal repayment deduction provisions from the year of acquisition/completion, and possession before year-end is required to claim these benefits. (AI Summary)
Pre-construction interest accumulated until acquisition/completion is deductible in five equal annual installments starting in the year of acquisition or possession; interest paid in the year of acquisition/completion is deductible that year as loss from house property within the applicable ceiling. Principal repayment is deductible under the principal repayment deduction provisions from the year of acquisition/completion, and possession before year-end is required to claim these benefits. (AI Summary)