This is a wonderful community! Glad to have found this recently. I’ve gone through several posts & replies on this topic & while I understand the straightforward workings, I have a slightly unique situation. I booked a home back in 2013 under subvention scheme (so had zero interest liability till posession, it was the builders onus) however due to unfortunate market conditions, in 2019, the builder went bankrupt & for 5 years from 2019 to 2024 (possession year) I paid pre-construction interest which is not being re-imbursed. I would like to claim this under section 24 (in five equal installments over 5 years)-is this doable?
Hey @kul,
As per the Income Tax Act, one can claim pre-construction interest in 5 equal installments starting from the year of possession of the property. In your case since that period has passed, in my opinion, you won’t be able to claim such interest.
Thanks-yes the 5 year period is essentially to mark the time limit of interest accumulation, mine is an exceptional case & since the interest payments only began in 2019 (I fall within the 5 year window from that front) but yes it needs to be debated
@Bharti_Vasvani Any opinion on this - given the whole perspective of ITR on the 5 year time limit is so that the interest doesn’t accrue forever - which makes sense, in line with that, even though my loan was in 2013, since it was subvention, technically it’s the builder that’s taken the loan repayment responsibility so it wasn’t until 2019 that the loan transfer actually fell into my hands & I started having to make interest payments… so can’t that not be considered?