Sale of property under HomeLoan
BACKGROUND:
I took possession of "ready to move-in" flat, after registration etc..paperwork and loan, in May 2013.
Since then have been claiming benefits of EMI payment i.e.- principal and interest under respective sections up to FY 2016-17.
I have left job in 2016 to start business, still being set-up and hence for FY 2017-18 am not going to have any income and thus no claim of benefit on EMI paid.
Simultaneously, looking at my investments I see the property rates as stagnant since last 2 years and no significant uptick foreseen in next year or two, thanks to affordable housing and slow economy. So this investment type is worst performing among others.
Hence, I am planning to sell-off this flat, as it is proving dead investment.
QUERY:
During some search I came across section 80C(5) which has mention for home buyer with homeloan and read as..
in case an owner transfers a residential house property that was acquired with a housing loan, within five years from the end of the financial year in which the possession was obtained, then, s/he cannot claim any deduction for repayment made during the year. Moreover, any deduction availed in respect of such house property, for housing loan repayment, stamp duty and registration charges, in earlier years, shall be treated as income of the year in which you transfer the property. Please note that there is no similar provision, for reversal of benefits, in respect of interest claimed under Section 24(b), nor is there any similar provision for reversal of benefits claimed, in case you prepay your housing loan even before completion of the five-year period.
Will be very kind for guidance on- if such case is applicable to me and if so then when do 5 years complete in my case - June 2018 or June 2019.