Eligibility to claim deduction on home loan interest during construction

Deduction on home loan interest paid cannot be claimed when the house is under construction. It can be claimed only once the construction is finished.

The period from borrowing money until the completion of the construction of the house is called the pre-construction period.

However, this interest paid during this time can be claimed as a tax deduction in 5 equal installments starting from the year in which the construction of the property has been completed.