You must Sign In to post a response.
  • Category: Indian Law

    Interest paid on housing loan before possession

    Have a query about housing loan interest income tax rebate? Searching for a solution on the web? Find advice from experts on this page.

    There is a provision to claim income tax rebate on the interest paid on housing loan before possession ( IT Act-24 B). It stipulates that an individual can claim in 5 instalment after possession. I missed the first 2 instalment for tax rebate due to ignorance (not knowing this provision earlier).
    Can I claim this year and 2 more leftover years in my ITR-1.
  • Answers

    2 Answers found.
  • No. You can claim only in the year in which you have paid. You can't show it as interest paid in earlier years. You are paying tax for the income during a particular year. Those expenses which you have spend from that year earnings only can be considered for exemption. So there is no chance to claim this year. This is an advise I received from a tax consultant, last year.

    always confident

  • You cannot claim the unclaimed rebates or exemptions of a particular FY or AY in another FY or AY.
    However if you had filed the IT return within the due date for filing and your return is not yet assessed you can file a revised return incorporating the correct unclaimed rebates, deductions or exemptions.. The facility is available in the incometaxefiling website itself. The time limit is there for filing revised return. Please ensure that. Just for an idea I quote below.

    "Where an original return filed by the assessee under section 139(1) or 142(1)(i) has certain‘omission’ or ‘wrong statement’ in it, the assessee can certainly file a revised return
    within 1 year from the end of relevant assessment year or before completion of assessment whichever is earlier."

    If the amounts are sizeable, you may contact IT department and get their guidance on the matter.

    For the other residual instalments to be claimed, you can claim the due amount a in te current FY or coming FYs as relevant and applicable..

  • Sign In to post your comments