While borrowing for
construction should look for various options to avail income tax benefits. Take
a plot of land cum construction loan.
In such a case the
income tax benefits are available on both portions of the loan (Price plot of
Land and Cost of construction).
The income tax benefits are available only in the year
of completion of construction.No income tax benefits are available in respect
of principal paid back when the construction is incomplete .
Take a loan to buy
the plot of land. Moreover, financial institutions will not be keen to lend
against land.
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