There are many ways to get tax exemption for construction of the property. For example, if you take a home loan, you can get tax exemption under 80 EEA for pre-construction. But here I will share with you a way about under construction property tax benefit under 80 C. When I purchased a plot for construction of property I also exempted tax by availing a home loan. Let us learn what are the income tax benefit on under construction property under 80 C.
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Under Section 80 C of Income Tax act, you can claim tax exemption for interest payments of Rs. 2 lakhs or another Rs. 1.5 lakh towards the principal repayment.
But you cannot avail tax benefits for pre- construction phase. The thing is after availing the home loan at times the possession of the property is received after a year. This creates an issue to avail tax exemption. The Section 24 of the Income Tax Act states that after purchasing a property a house must be constructed to avail the tax exemption. Without construction of any house on land you cannot avail tax benefits. Although if the property is under construction and some work is getting done on the property purchased you can avail claim the tax benefits.
As per the guidelines, you need to complete the construction of the house within 5 years of purchasing the plot. Or else you won’t be able to get tax benefits.
I hope this resolves your query 'can I claim income tax benefit for under construction property?'
This was all about income tax benefit on under construction property under 80 C.
Read more:
What Is Section 80 EEA?
What Is 80EE In Income Tax? What Is 80CCC In Income Tax?Your Feedback Matters! How was this Answer?
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Can I claim tax benefit for under construction property?
Samay
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2 Year
2022-06-10T09:38:23+00:00 2023-09-21T16:05:40+00:00Comment
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