How can I get pre EMI Home Loan Interest?

How can I get pre EMI Home Loan Interest?

Pre-EMI refers to the monthly payment which includes only the interest component of your home loan. In pre EMI you are not repaying anything from your loan amount, you are just paying your interest rates. Pre EMI option is only for under construction property. Go for pre EMI option only when you have issues of cash flow. While taking a home loan, pre-EMI is relevant when the construction of the building is yet to be completed. For an under-construction apartment, the builder's payment depends to some extent on the stages of construction. The amount of time required for the completion of building construction depends on the speed with which the builder works, which further depends on various factors.

Pre EMI home loan based on:

  • Simple interest calculation.
  • Only interest no principle amount.
  • Interest calculate on only disbursal loan amount.
  • Payment begins on the first disbursal.
  • Principal amount does not reduce.
  • No tax benefits.
  • Suitable for property investors.
  • Loan payback not started with Pre-EMI.

Tax deduction on interest paid on pre-possession of property:

It is now convenient and economical to take a home loan to buy your dream home, as you can claim tax deduction on the home loan interest rate.

Yes, definitely You can claim the deduction on the interest that you paid on the home loan before possession, even if the construction is complete and the property is ready for occupancy. Although, you can claim only the amount up to Rs. 2,00,000 in this case.

Means, the interest you pay before the right on your property gets collected. Once you claim on tax exemption on this interest, you can recover the amount in five easy installments after completing the construction . To get an accurate estimate of this amount, you can use an online home loan EMI calculator.

You can start claiming that tax deduction on the pre-EMI of your home loan only after the construction of the property will be completed. Tax deduction on the total interest paid during the construction period, can be claimed in five equal installments in the next five years.

Frequently Asked Questions:

What is the total tax deduction I can claim for the interest paid on the home loan?

Under Section 24(b) of Income Tax, you can deduct total income tax on the interest component of a home loan up to Rs 2 lakhs. This is the total amount allowed for a maximum of two self-occupied properties.

When can I start claiming tax deduction on the pre-EMI of my home loan?

You can start claiming tax deduction on the pre-EMI of your home loan only after the construction of the property is complete. Tax deduction on the total paid interest during the construction period can be claimed in five equal installments in the subsequent five years. It is deducted under section 24 of the Income Tax Act.

Can I claim tax benefit on pre-EMI interest if I sell the property before taking possession?

If you are paying pre-EMI on your home loan, but you sell the property before taking any possession, then you can claim the interest paid as cost while computing capital gains, when the property is finally legal is sold sporadically.

Can I avail pre-EMI on Home Loan for an already built house or a ready-to-move flat?

Pre-EMI option for home loan can be availed only for under construction properties. This is because the loan amount is disbursed in installments as per the requirement at different stages of construction.

With GRD India financial services Pvt. Ltd. you can get instant home loan at very low interest rates, it provides all kind of services to their client as per the banks norms. They make efforts for the clients in providing best loan price.

 

For online application visit- www.grdindia.in

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