Find
No deduction is allowed for a house until construction is completed. Interest paid during construction is saved up and claimed in five parts after completion. The flat also has no annual value until then.
ITR
Home loan on a flat still under construction
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Sec 24(b) (now Sec 22(1)(b)); Sec 80C (now Sec 123)
Analysis
Under Sec 24(b), interest relates to the property, which must exist to have income. So for FY 2025-26, nothing is claimed for an under-construction flat. Principal repayments do not qualify for Sec 80C until possession either. Keep the bank statements so you can claim the pre-construction interest later.
Close
- Keep year-wise interest records.
- Do not claim interest in the return yet.
- Note the possession date when it comes.
- Start the five part claim from that year.
Connect now
A Savvy replies in minutes.
Fixed price before you pay. Your Savvy is paid only after you accept the work.
General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.
People also ask
- House property sections under the Income-tax Act 2025
- Section 22(1)(b) (old 24(b)): ₹2L Home Loan Interest Deduction (Self-Occupied)
- Home loan interest deduction for a self-occupied house
- House property deductions under the new regime
- Tax on an empty flat that is deemed let out
- Home loan interest limit for two self-occupied houses