Q. I am buying a residential land in sector 9 in Gurgaon. I want to take home loan from a bank. Though I am not sure if I would get benefit on this or not. I am getting different information from different people. Sombody is saying that if I take Land + then I would get IT rebate. But I am not clear if I would get rebate on complete loan or only loan component which is given for construction. – Brajesh Jain.
Now considering ur case, following options r there for u.
1. Land purchase thru Loan & construction from own money – In this case, although the loan was taken primarily to purchase land still u can avail the on this loan if u have constructed ur house on this land within the 3Y period.
2. Lan purchase as well as construction both r from loan – In this case again u can avail tax benefit on total loan condition the construction is completed within 3Y.
Plz. note as the construction `ll take time to complete, the interest paid by u in between on land loan or land + construction loan `ll not be available for tax benefit in the same FY. But u can carry over the same & avail @ 20% each year from the FY of completion of construction.