Dear all
I bought a plot in August 2005 and started construction.The house is not yet complete. During Construction upto March 2006, I paid an interest of Rs.14,000 on the home loan to a public sector bank. Is the interest amount exempted from income tax? If so, to what extent and under which section can the rebate be claimed ? there is no income from the house during the relevant period.
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  • Hai Smantha,

    As I know,

    Income Tax exemption can be sought only once the construction is complete. You can seek tax benefits only from the financial year in which the construction is complete. There will be no deduction for the year in which the construction is still on as at the end of the year. So for the year ended March 31, 2006, there will be no; tax benefits.