Neutral impactEconomy
When can you claim tax benefits on home loan for under-construction property? Tax expert explains
Mint 1d ago·6 Oct 2026, 7:30 am
Home loan borrowers often misunderstand when they can claim tax benefits for a property still under construction. The key rule is that tax deductions for the principal amount and interest paid before the property is ready for possession are not available immediately. Instead, these benefits are claimed only when the building is completed, with a deadline of five years from that date. This delay can impact your annual tax planning, as you must carry forward these expenses to the year of completion.
This news matters because it clarifies the specific timeline for claiming deductions, helping investors manage their cash flow and tax liability better. The ability to claim these benefits is tied to the completion date and the taxpayer's chosen tax regime. Investors should check their property's status and plan their finances accordingly to maximize their savings. Watch for updates on completion certificates and ensure all documentation is in order to avoid missing these deductions.
Excerpt from Mint
Home loan tax benefits for an under-construction property are not automatically available from the first EMI. Principal repayment, pre-construction interest and post-completion interest follow different rules, while the property’s completion date and chosen tax regime can affect eligibility. If you have bought an…Read the original at Mint
Key takeaways
- Category: Economy.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
