I purchased a house recently for Rs 8,50,000. I did not have the time to take a home loan as there was a need to urgently register the house. 

 If I take home loan now, will I get the tax benefit for the interest and principal?

- Sriram

I presume you paid for the purchase of the home amount from your savings. If so, I am afraid you will not be eligible for any tax benefits on the loan availed now.

However, if you had borrowed money from somewhere to finance the acquisition and use the home loan to repay such a loan, then the situation would be different.

In such a case, the interest payable on the home loan would be eligible for deduction (under Section 24 where the limit is Rs 1,50,000). Technically, the capital repaid on such a home loan is not eligible for deduction (under Section 80C where the overall cap is Rs 1,00,000).

To see the other queries answered by our home loan expert, read Should you go in for a Home Saver loan? and Can I repay my brother's loan?

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