Home Loan Tax Benefits for Under-Construction Property
Knowing the home loan tax benefits for under-construction property is very helpful for homebuyers who want to save money and buy a home at a lower early price. Under the Indian Income Tax Act, people who buy an under-construction home with a home loan can save tax under Section 24(b) for the interest they pay and Section 80C for the loan principal they pay back. However, unlike ready-to-move homes, you cannot claim tax savings while the building is still being built. Instead, the interest you pay during the building stage—called Pre-EMI interest—is added up.
You can claim this total amount in five equal yearly parts, starting from the financial year when the building is finished and you get the keys. You can claim up to ₹2 Lakh per year under Section 24(b) for a home you live in yourself (if the home is finished within five years from the end of the financial year in which you took the loan) and up to ₹1.5 Lakh per year under Section 80C. This helps you lower your yearly tax bill once you get your home. Because of these savings, buying a home in a major upcoming project like Prestige Falcon City Reserve is a smart way to build wealth. It lets buyers get lower pre-launch prices and plan their tax savings once the project is ready.
Prestige Falcon City Reserve: A Premier Township in South Bangalore
Built by the well-known Prestige Group—India's top real estate builder with a CRISIL DA1+ rating—Prestige Falcon City Reserve is a large new apartment project on Kanakapura Main Road in Konanakunte, South Bangalore. It is part of a huge 41-acre township. This new luxury project has 2,520 well-designed apartments across 7 tall towers that have a ground floor plus 30 floors (G+30). Built to give residents plenty of fresh air and green views, about 75% of the project's land is kept open for green parks, gardens, and play areas.
Prime Location and Seamless Connectivity
Location is one of the best features of Prestige Falcon City Reserve. Located right on National Highway 948 (Kanakapura Road), the project is directly opposite the Konanakunte Cross Metro Station on the working Namma Metro Green Line. This makes it very easy for residents to travel across Bengaluru. Also, the township is right next to the Forum South Bengaluru mall, so great shopping, restaurants, and movie theaters are just steps away. Major work and travel hubs like JP Nagar, Silk Board Junction (7.1 km), and Global Village Tech Park (7.9 km) are also easy to reach.
Apartment Configurations, Pricing, and Payment Structure
Prestige Falcon City Reserve has well-planned 2, 3, and 4 BHK apartments to suit different family sizes. All homes come with great airflow, marble floors in the living and dining rooms, and big balconies. The base price is between ₹10,500 and ₹14,000 per sq. ft.:
- 2 BHK Apartments: Size is 1,240 to 1,379 sq. ft., with prices starting from ₹1.4 Crore onwards (EOI is ₹12 Lakh to ₹15 Lakh).
- 3 BHK Apartments: Size is 1,830 to 1,970 sq. ft., with prices starting from ₹2 Crore onwards (EOI is ₹15 Lakh to ₹25 Lakh depending on the layout and extra home office room).
- 4 BHK Apartments: Size is 2,450 to 2,726 sq. ft., with prices starting from ₹3 Crore onwards (EOI is ₹30 Lakh for homes with a home office room).
The project offers an easy payment plan linked to building progress: you pay 10% when booking, 10% when signing the agreement, and the remaining 80% in steps as the building gets built. The official launch is planned for October 2026, and the project will be ready by December 2031. Buying a home here with a home loan makes it easy to pay in small steps while saving up your pre-construction tax benefits.
Frequently Asked Questions (FAQs)
Q1: Can I claim home loan tax deductions while Prestige Falcon City Reserve is still under construction?
No, under the Income Tax Act, you cannot claim tax savings on the loan amount or interest while the home is still being built. Your tax benefits start from the financial year when the building is finished and you get possession.
Q2: How is the Pre-EMI interest paid during the construction period claimed for tax relief?
All the Pre-EMI interest you pay from the day you take the loan until the building is finished is added together. You can claim this total in five equal yearly parts under Section 24(b), starting in the year you get your home.
Q3: What is the maximum annual interest deduction allowed under Section 24(b)?
For a home you live in yourself, you can claim up to ₹2 Lakh per financial year. This ₹2 Lakh limit includes both that year's regular interest and one-fifth of the interest you paid during construction.
Q4: What happens if an under-construction project takes more than 5 years to complete?
If the building is not finished within 5 years from the end of the financial year in which you took the home loan, the yearly interest tax benefit under Section 24(b) drops from ₹2 Lakh to ₹30,000 per year.
Q5: Are stamp duty and registration charges for Prestige Falcon City Reserve eligible for tax benefits?
Yes, stamp duty (5% in Karnataka) and registration charges (1%) can be claimed under the ₹1.5 Lakh Section 80C limit. However, you can only claim them in the financial year when you actually pay these fees after the home is ready.
Q6: What are the available unit sizes and starting prices at Prestige Falcon City Reserve?
The project offers 2 BHK homes (1,240–1,379 sq. ft.) starting at ₹1.4 Crore, 3 BHK homes (1,830–1,970 sq. ft.) starting from ₹2 Crore, and 4 BHK homes (2,450–2,726 sq. ft.) starting from ₹3 Crore onwards.
Q7: Can joint borrowers double their tax benefits on an under-construction apartment?
Yes, if you buy an apartment together with a co-owner who also helps pay the home loan, each person can separately claim up to ₹2 Lakh under Section 24(b) and ₹1.5 Lakh under Section 80C under the old tax regime once you get possession.