


- About Us
- OUR OFFERINGS
- CALCULATORS
- RESOURCE CENTRE
- Quick Links
- NEWS CORNER
-
INVESTOR RELATIONS
- Financial Reports
- Investor Presentations
- Annual Reports
- Notices
- ESG Profile
- IEPF
- Investor Call Transcript
- Corporate Announcement
- Public Issue of NCD'S
- Qualified Institutional Placement
- Investor Relations Contact
- Familiarisation Programmes
- ISO CERTIFICATIONS
- Forms for Shareholder KYC-PAN-Nomination update
- Credit Ratings
- Statutory Advertisements
- CONTACT US
- Login

Online

India's 1st Completely Online Home Loan!
-
e-APPLY
-
e-SANCTION
-
e-DISBURSE
Start your eHome Loans Process Now!
Apply OnlineShaky foundations: How on-going construction of your home can affect your tax benefits

- Home Loans Guide
- Feb 15, 2016
- VIEWS: 2865
The time taken in the construction of your home affects the tax benefits you may receive on the home loan. Here are the three provisions for these benefits:
- Rebate on housing loan:
Section 80C allows you to get tax benefits for principal repayment of the home loan up to Rs. 1.50 lakh. If the property is under construction or is being self-constructed, your EMI’s do not begin until the entire home loan amount is disbursed in full, which often coincides with the completion of construction. However, if the entire loan amount is disbursed before the project is completed, your EMI might start early. In such a situation, you would not be able to claim any tax benefits in respect of such principal repayments as it is allowed only with respect to a property, income which is taxable under the head “Income from House Property”. Unless the property is completed and possession has taken place, the same cannot be taxed and hence, you would miss out on the tax returns.
- Deduction on Interest paid for Housing Loans:
Section 24 allows you deductions on the interest paid on money borrowed for purchase, construction, repairs, renovation or reconstruction of a house. Like Section 80C, the condition of completion and possession is required. However, unlike Section 80c, Section 24 allows you to claim the interest for the period before you take possession of the home, referred to as pre-EMI interest, in five equal installments beginning from the year of the completion of construction. So the more the completion of the house is delayed, the more delayed is your right to claim the interest on the money borrowed by you.
- Claiming exemption of capital gains:
Section 54 and 54F allow exemption from long term capital gains if a new house is constructed within three years. However, if there is a delay in the completion of the house, the income tax officer may take a different view in the case and an appeal will have to be filed with higher authorities to claim the exemption. It is important that the house is constructed in time so that the tax benefits may be availed of.This is one of the main reasons people take home loans. Related Articles:
- Structuring Home Loans & Tax Exemptions
- What is Property Tax and how is it calculated?
- Tax Benefit on Home Loan Interest for FY 2017-18
The post Shaky foundations: How on-going construction of your home can affect your tax benefits appeared first on Indiabulls home loans.

Top up home loan vs personal loan a comparison to determine the better choice for loans
Taking on a loan of any kind is a financial responsibility. It is a debt that needs to be repaid, in full, based on the tenure chosen by the borrower. Most banks, housing finance companies and non-banking finance companies offer a myriad of loans to finance the different needs of customers.
- Home Loans Guide
- Jul 23, 2019
- VIEWS: 8360

MCLR in Home Loan
The interest rate is one of the most important components of a loan, especially in the case of a high-value loan that lasts for 2 decades or more; the home loan.
- Home Loans Guide
- May 24, 2019
- VIEWS: 6097

Types of Home Loan Charges
Most people fulfil their wish of becoming homeowners by taking out a home loan. It is the easiest way to afford a property as one can pay for the house in monthly instalments.
- Home Loans Guide
- May 24, 2019
- VIEWS: 6958
No Comments
Subscribe
Most Viewed Blogs
Categories
- Home Loans Guide 125
- Home Renovation Loan Guide 3
- Home Loan Transfer Guide 14
- Home Extension Loans Guide 1
- Loan Against Property Guide 28
- Home Loan Interest Rates Guide 2
- Others Guide 8
- Home Decor & Lifestyle Guide 5
- Plot Loan Guide 3
- PMAY Guide 5
- Uncategorized Guide 1
- NRI Home Loans Guide 5
- Financial Resolutions Guide 1
- New Year Resolutions Guide 1
Archives
- Mar 2020
- Jan 2020
- Nov 2019
- Jul 2019
- Jun 2019
- May 2019
- Apr 2019
- Mar 2019
- Feb 2019
- Jan 2019
- Dec 2018
- Nov 2018
- Jul 2018
- Jun 2018
- May 2018
- Apr 2018
- Mar 2018
- Feb 2018
- Jan 2018
- Dec 2017
- Nov 2017
- Oct 2017
- Sep 2017
- Aug 2017
- Jul 2017
- Jun 2017
- May 2017
- Apr 2017
- Mar 2017
- Feb 2017
- Jan 2017
- Dec 2016
- Nov 2016
- Oct 2016
- Jun 2016
- Apr 2016
- Mar 2016
- Feb 2016
- Jan 2016
- Dec 2015
- Nov 2015
- Oct 2015
- Sep 2015
- Aug 2015
- Jul 2015
- Jun 2015