Home Loan rebate in Indian Income tax
I had taken a home loan in Jul 14. Took possession in Mar 16. Since the loan was partially disbursed I was paying the Pre-EMI’s till Feb 16. EMIs started from March 16.
YEAR PEMI INTEREST Principal
FY 14-15 60000 0
FY 15-16 150000 0
FY 16-17 160000 50000 10000
So for claiming the Sec 24 benefit, which calculation is correct.
CASE 1:
PEMI for (FY 14-15 + FY 15-16)/5 + PEMI for FY 16-17 + INTEREST for FY 16-17
provided the upper limit of 2 Lakhs
CASE 2:
PEMI for (FY 14-15 + FY 15-16+ FY 16-17)/5 + INTEREST for FY 16-17
provided the upper limit of 2 Lakhs
Can someone please help.
(1)1 Comments
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As you took possession for House say on 1st March 2016. For the Financial year 1 April 2015 to 31 March 2016; you should/could have claimed all the interest paid [including preEMI] of the Financial year 1 April 2015 to 31 March 2016 plus 20% of PreEMI Interest for 1st April 2014 to 31 March 2015. Subject to limit of Rs 2,00,000.
From you question it looks like you have not done. So the Case 2 is applicable to you. So for the current Year; all interest paid from 1st April 2016 to 31 March 2017 plus 20% of all interest [including preEMI interest] subject to Rs 2,00,000.
It maybe prudent to check with CA if you want to amend last years [Financial Year 1 April 2015 to 31 March 2016] Tax returns and claim a refund.
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