Home not delivered in 3 years after loan? You will now lose out on tax breaks

New Delhi: Despite the increase in the budget for housing loan interest exemption limit, income tax law in a little-known provision could damage the buyer lakh families will not be calculated their builders on time delivery.

Information Technology Act that, if you want to use by the buyer house builders did not surrender, "within three years from the end of this fiscal year the capital is borrowed," the amount of interest in the exemption will only Rs 30,000 a ..
apartment in Gurgaon in 2010 that should have been ready by the end of the next year but has not been delivered yet. As possession has been delayed by the builder, Bishnoi said he will not be able to claim full exemption on the interest component of his home loan.

On his Rs 47 lakh loan and based on the new exemption limit of Rs 2 lakh, his loss because of the delay will be around Rs 50,000 every year through the loan tenure of 20 years. This is unfair to home buyers, said a tax expert .
The law should be amended or error message that people can intentionally concealing, says Anshuman Magazine, managing director of property consultancy CB Richard Ellis in southern China. The assessor may refuse the exemption, if the return is in the consideration that the income tax department of a senior official.


"This could be a big setback, because it could be a great responsibility," he said, asked not to be named, most people do not know .. home loans
SOURCE : WEB