Can I get HRA benefit while the house is in renovation ?

POSTED BY manishrawat4u ON August 19, 2014 5:39 pm ONE COMMENT

Hi All,

I am having a question regarding the tax saving. I recently bought a house located in delhi. I worked in Gurgaon (50km from my house). Prior to that house, I claim HRA by showing that I am paying the rent to my parents. Now, I bought my own house, but that house needs some renovation and that could took months to complete. Although I have the possession letter for that house but I am not residing in that house

So, my question is that can i claim the interest part and hra in this scenario for tax saving purposes or not?

One reply on this article “Can I get HRA benefit while the house is in renovation ?”

  1. Lokesh Jain says:

    Hi Manish,

    You own the house, but are currently living in a rented one due to renovation.

    In such cases, the Income tax act permits the individual to claim HRA and home loan benefits which includes both principal and interest repaid on the home loan.

    But kindly note that if your house remains vacant, you will still need to show a notional rent income of your owned house and pay tax, if any on that.

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