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I booked a property in April 2014.
This property is under construction.
I got a loan on this property and paid EMI from May 2014 with Principal amount and interest

I want to know:- Can I get benefit under section 80C on Principal amount paid by me on this loan for period of May to March 2015. Can I show this principal amount in my saving (80C) and claim benefit in income tax

  • Welcome to Money.SE, please add a country tag to your question. – JoeTaxpayer Jan 20 '15 at 13:13
  • In some countries (such as the US), interest payments on a mortgage on one's home is deductible, but not any part of the principal repaid as part of each monthly payment. However, Indian tax law marches to the beat of a very different drummer and maybe the principal repaid is deductible too. In any case, in the early years of a mortgage, the monthly payment is mostly interest, and the principal repaid is so small that the extra deduction because of principal repayment will not affect taxes significantly. – Dilip Sarwate Jan 20 '15 at 21:16
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No, unless you take possession of the property before 31 March 2015. The 80C deduction for Home Loan Principal repayment is only from the financial year you take the possession.

The same applies to Interest as well. You cannot claim rebate on the interest paid unless you take possession of the house.

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