Tax benefit on under-construction home loan interest remains intact in new act
Budget 2026 clarifies that pre-construction housing loan interest will be deductible from house property income, aligning with the new Income Tax Act, 2025. This proposal ensures continuity of tax treatment for prior-period interest, removing ambiguity without enhancing the deduction quantum. Experts note that while the benefit is preserved, the delay in claiming it until possession remains an unaddressed concern.
Budget 2026 clarifies that pre-construction housing loan interest will be deductible from house property income, aligning with the new Income Tax Act, 2025. This proposal ensures continuity of tax treatment for prior-period interest, removing ambiguity without enhancing the deduction quantum. Experts note that while the benefit is preserved, the delay in claiming it until possession remains an unaddressed concern.
