Announcement

Collapse
No announcement yet.

Requirement of Completion Certificate for Tax Benefit on Home Loans?

Collapse
X
Collapse

Requirement of Completion Certificate for Tax Benefit on Home Loans?

Last updated: January 11 2017
9 | Posts
11191 | Views
  • Time
  • Show
Clear All
new posts

  • Requirement of Completion Certificate for Tax Benefit on Home Loans?

    I have bought a property on resale around Pune,which comes under Gram-Panchayat. The flat is ready for possesion and I didn't faced any hassle in getting the loan, executing the registration etc. However the completion certificate is under process and builder is saying that it takes some time. I have availed the loan with appropriate Architect Certificate as demanded by HDFC Ltd.

    Can some one please let me know if Completion Certificate/Occupancy certificate is mandatory to get the tax benifit in home loan as my employer is quoting that it's mandatory. I do have the possession letter from builder and architect certificate. If not then what other document would be sufficient to get tax benefit.

    Thanks in advance.
    Last edited July 14 2014, 04:04 PM. Reason: spelling mistake
  • #2

    #2

    Re : Requirement of Completion Certificate for Tax Benefit on Home Loans?

    IT benefits are available after possession certificate.
    sometime Completion certificate takes time to be issued for many projects-over a year aftern possession,though rule says that one cannot move in until completion certificate is obtained.
    Speak to your company and explain the problem to them

    Comment

    • #3

      #3

      Re : Requirement of Completion Certificate for Tax Benefit on Home Loans?

      chicken and egg problem. It is illegal to get possession unless building has completion certificate. On the other hand, as vaibhav123 stated, completion certificate can take time to come even though building is complete in all aspects. So you can try talking to your IT department. Else if they dont agree, you can still take it under consideration while filing IT returns and claim refund

      Comment

      • #4

        #4

        Re : Requirement of Completion Certificate for Tax Benefit on Home Loans?

        we used to get this benefit by just declaring the date of possession but from the last year HR (clerks) started asking for possession certificate and in few cases they went ahead and asked people to find the builder and get the possession certificate dated 10 years back

        policy changes company to company.

        Comment

        • #5

          #5

          Re : Requirement of Completion Certificate for Tax Benefit on Home Loans?

          Possession or allotment letter is only needed, not completion certificate from PMC.
          Many buildings do not have completion certificates but possession letter from builder can be easily obtained from
          builder once you move in.

          Comment

          • #6

            #6

            Re : Requirement of Completion Certificate for Tax Benefit on Home Loans?

            Hi I have a query regarding claiming 2,00,000 interest on home loan for tax benefit. I bought under construction property in 2014 and loan got started in mid of 2014 onwards. Now in Feb 2016 I am getting possession. Suppose my interest component is approx. Rs.-30000/-. and remaining is principal. So shall I claim whole 2,00,000 interest benefit for tax claim i.e for April 2015 to Mar 2016. Or shall I claim only 60000 interest benefit only for Feb and Mar month.
            I know that previous years EMI-interest I can claim in next 3 to 5 years after possession.
            I have another question in regards of that..
            Shall I claim more than 2,00,000 previous year installment in addition to current year interest payment or it is capped up to 2,00,000 lack only considering previous year interest installments payment as well.

            Comment


            • vaibav123
              vaibav123 commented
              Editing a comment
              Interest benefit commences after possession of flat.Earlier interest paid will be added to current year interest component installment wise.
              It will be 60000+ 1/5 of interest paid from 01 April to January
              Only after the construction of the building (for which the loan has been availed) has been completed can a tax deduction on the pre-EMIs (for the preconstruction period) can be availed. On completion of the construction, the total pre-EMI interest paid, in the subsequent years, is deductible in 5 equal instalments.
          • #7

            #7

            Re : Requirement of Completion Certificate for Tax Benefit on Home Loans?

            Originally posted by nepolean View Post
            Hi I have a query regarding claiming 2,00,000 interest on home loan for tax benefit. I bought under construction property in 2014 and loan got started in mid of 2014 onwards. Now in Feb 2016 I am getting possession. Suppose my interest component is approx. Rs.-30000/-. and remaining is principal. So shall I claim whole 2,00,000 interest benefit for tax claim i.e for April 2015 to Mar 2016. Or shall I claim only 60000 interest benefit only for Feb and Mar month.
            I know that previous years EMI-interest I can claim in next 3 to 5 years after possession.
            I have another question in regards of that..
            Shall I claim more than 2,00,000 previous year installment in addition to current year interest payment or it is capped up to 2,00,000 lack only considering previous year interest installments payment as well.
            You would need to provide the tax certificate which can be downloaded as a PDF from most banks. What ever is mentioned as interest component and principle component for that year can be claimed. Your payroll will decline the proof if the numbers do not match.

            Comment

            • #8

              #8

              Re : Requirement of Completion Certificate for Tax Benefit on Home Loans?

              So though I got possession in Feb 2016 month I can claim interest benefit for entire financial year i.e from Apr 2016 to Mar 2017. Is that correct?

              Comment


              • vaibav123
                vaibav123 commented
                Editing a comment
                No.
                Interest for Feb and Mar=60000 and 1/5 of total pre emi interest paid.
                EMI commences after possession of flat and pre EMI prior to possession.
                There is difference in treatment.
            Have any questions or thoughts about this?
            Working...
            X