Do I get a tax benefit on the pre-EMIs?

Unlike a regular housing loan, the entire amount is not disbursed to the builder at one go. Instead, the sanctioned amount is disbursed to the builder in tranches as and when the stipulated work is completed.

This stipulation is defined in the agreement. For instance, 20% of the amount may be disbursed when the second slab is completed and so on.

At this stage of partial disbursements you pay only interest component of the disbursed amount, which is called the pre-EMI. You can avail of tax benefits on the interest component of the pre-EMI only after the construction is complete.