Tax exemption on loan repayment for a plot
Tax exemption on loan repayment for a plot is not availableApnaloan.com Research Bureau
10 Aug 2007
I am taking a loan to buy a plot of land. I intend to keep the plot for about 5 years and then sell it. What tax benefits are available on the loan repayments?
Would the answer be any different if I began construction of a house property on the plot at a later date rather than selling the bare plot as such?
No tax benefits are available for repayment of a loan taken to buy a barren plot of land.
In case you begin construction of house property at a later date, the interest payable on plot loans will be treated as interest payable during construction period.
For more information on Home Loans click here