Claiming House loan interest for mid year possession

POSTED BY SumitVijay ON January 7, 2015 7:16 pm COMMENTS (3)

I purchased a house in June 2014 and my EMIs started from July 2014. I moved into the house in Dec 2014.
1) Can I claim HRA from April 2014 to Nov 2014.
2) For the interest and principal portion of my EMI should I consider all EMIs or only the ones after Dec. As we can claim interest only after possession.
3) How do we prove that we have possession of house,. i.e what document is required?  Builder has given me construction completion letter from their end.

3 replies on this article “Claiming House loan interest for mid year possession”

  1. nikhs12345 says:

    Answer 1 : Yes you can claim HRA benefit till Nov-2014
    Answer 2: For tax benefit you can claim interest and principal only after possession i.e. Dec here. for the interest which you paid before possession you can claim it in equal part for current + next 4 years.
    Answer 3: Builder can give possession later, construction complete letter, in some case self declaration is also acceptable. better to submit letter given by builder.

    1. SumitVijay says:

      For interest, I understand that it can only be shown for tax after possesion.
      But does the same apply to Principal also??
      I remeber reading elsewhere that Principal can be shown as sosn as we start paying EMI. am I missing something?

      1. You can claim principle in tax , only after you have the possession , thats all is the rule .

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