Home Loan Tax Benefits for Under-Construction Property

Buying a home while it is still being built is a smart way to get a lower price and see your property value grow over time. However, many buyers are not sure how Home Loan Tax Benefits for Under-Construction Property work under the Indian Income Tax Act. While you cannot ask for tax savings on your home loan principal or interest while the building is still going up, the tax rules make sure you do not lose the interest money you pay during this waiting time. Instead, all the interest you pay before the building is ready is added up as "pre-construction interest." Once you get the keys to your home—like when you book a flat in a big upcoming township such as Prestige Falcon City Chennai—you can claim this saved-up interest in five equal yearly parts under Section 24(b).

This starts from the financial year in which the construction finishes. You get this benefit along with your regular yearly interest tax savings (up to Rs. 2 lakh per year for a home you live in under the old tax rules) and principal payment savings (up to Rs. 1.5 lakh per year under Section 80C). To keep your full Rs. 2 lakh interest limit, the building must be finished within five years from the end of the financial year you took the loan. Because of this rule, it is very important to buy from a trusted builder who finishes work on time.

Spotlight on Prestige Falcon City Chennai: A Premier Township Investment

If you want to save on taxes and buy a home in a fast-growing area, Prestige Falcon City Chennai is one of the best new housing projects in South Chennai. Built by the famous Prestige Group, this huge township is located right on the busy Medavakkam-Sholinganallur Road in Medavakkam (Pin Code: 600100), just opposite Gleneagles Global Health City.

Planned as a complete luxury community, the project covers 23 acres of land. A massive 80 percent of this land is kept as open space with green gardens, parks, and safe walking paths without cars. Only 20 percent of the land is used for buildings, giving you a peaceful, green, and uncrowded place to live.

Project Specifications, Configurations, and Pricing

Prestige Falcon City Chennai has 22 tall towers. Each tower is built with 2 basement levels, a ground floor, and 14 upper floors (2B + G + 14). In total, the project has 2,170 Vaastu-friendly flats made for modern families:

• 2 BHK Apartments: Sized from 1,001 sq. ft. to 1,220 sq. ft., these are great for young working people and small families working near the OMR IT road.
• 3 BHK & 3.5 BHK Apartments: Sized from 1,380 sq. ft. to 2,150 sq. ft., these offer big living rooms, wide balconies, and extra space to work from home.
• 4 BHK Luxury Units: Sized between 2,450 sq. ft. and 2,735 sq. ft., these come with maid rooms and wide views of the 18-acre central green park.

With a good early base price of about Rs. 12,987 per sq. ft., prices start at Rs. 1.30 Crore for a 2 BHK and go up to Rs. 3.54 Crore for large 4 BHK homes. The project is set to be ready by December 2031. Buyers who pay step-by-step as the building goes up can easily collect their pre-EMI interest and claim big tax savings once they get their keys.

World-Class Amenities and Connectivity

At the center of the township is a huge 70,000 sq. ft. clubhouse with more than 60 fun and health features. People living here can enjoy swimming pools, a modern gym, spa and steam rooms, indoor game rooms, party halls, a café, pet parks, and two basement parking levels with electric car charging points.

Easy travel to other parts of the city is a big reason why property prices here are expected to grow by 15 percent every year:

• IT Hubs: Just 5 km (5 to 12 minutes) from the Sholinganallur ELCOT SEZ, which has top tech companies like TCS, Wipro, and Cognizant, and 20 minutes from TIDEL Park on OMR.
• Metro & Rail: Only 1.5 km (5 minutes) from the upcoming Medavakkam Metro Station on the Red Line, and 8.2 km from Tambaram Railway Station.
• Airport & City Access: Located right off the 200 Feet Radial Road, giving you a smooth 30-minute drive (12 km) to the Chennai International Airport and a quick 10-minute drive (6.4 km) to Velachery.