I would greatly appreciate your guidance on my below query.
I am taking a home loan (it has been pre-approved from SBI). I was planning to go for composite loan for buying plot + constructing house. Now, my bank guy is saying that loan amount against construction will only be sanctioned against bills for construction expenses. I wonder why would then I take loan if I had money to spend and then get it reimbursed by presenting SBI with the bills! The bank guy is strongly recommending that I go for only Plot loan (and use surplus money available in my bank account for construction). But My reason to go for construction loan was to get tax benefits (I am a salaried person). Please advise, if i go for only Plot loan, will it give me any tax benefit. Just for your info, the SBI bank guy said I can but only after construction is completed. but on internet I get different advice that plot loans provide no tax benefits at all. Also, my loan has been approved as ‘Home Loan’ and not as ‘Land Loan’. Does SBI provide land Loan as home loan??? If they do then does Income Tax considers this as enigible for tax exemption?? Kindly provide your expert advice. Many Thanks in advance.