Q:I am planning to take loan from a bank to buy a plot. I m buying this plot to construct a house, will I be able to show my loan amount and the construction amount for the tax benefits?
Latest Answer: No. You will not get any tax breaks if you take a loan to buy a plot. But, if you take a loan for construction, that means a loan to build a house on that plot of land, then you can get a tax break. In this case, the tax benefits are available on both portions of the loan the one to purchase the plot and the one taken to construct the house thereon. If u take a loan of 10 lakh for plot and 5 lakh for construction, then you can get tax benefit for the entire 15 lakh. But too many processes are involved in this case.
