claiming HRA and housing loan interest in the same finanicial year

POSTED BY Zoeb ON January 4, 2012 5:01 pm COMMENTS (9)

Dear Sir,
I taken a home loan for an under-construction house, which will be completed before March, 2012. However, right now I am paying a rent of 13500/- pm, so please let me know whether can i claim HRA and housing loan principal for this year. My home loan emi started from the month of July, 2011.
Regards
Zoeb Lakdawala

9 replies on this article “claiming HRA and housing loan interest in the same finanicial year”

  1. Ravi says:

    Dear Ashal,

    I have moved in to ready to occupy flat in december 2016 till then i was staying in the rented flat. Can I claim both HRA and load benefits ?

  2. SumitVijay says:

    I have a question similar to this one.
    I purchased ahouse in June 2014 and my EMIs started from July 2014. I moved into the house in Dec 2014.
    Now,
    1) Can I claim HRA from April 2014 to Nov 2014.
    2) For the interest and principal portion of my EMI shoudl I consider all EMIs or only the ones after Dec. As we can claim interest only after possesion.
    3) How do we prove that we have posesssion of house,. i.e what document is required.

  3. Dear Zoeb, As of now please claim HRA benefit. In case your employer allows to avail 80C on principal repayment as well as stamp duty paid for registration, accept it.

    Once the possession of your house is with you in march 2012, then again try with your employer to get section 24 benefit on interest part if possible for the residual tax deduction in the month of march. Else file your income tax return in May-June 2012 & claim tax refund.

    By the way, with all due respect to KBC & Amitabh Bachchan – ‘ KOI BHI SAWAL CHHOTA NAHI HOTA’.

    So whatever little queries you do have in your mind please post the same in this forum.

    Thanks

    Ashal

  4. Dear Zoeb, no problem if you are not able to quote your possession of your house & accordingly interest benefit from your employer. You may get it as tax refund while filing your income tax refund.

    Thanks

    Ashal

    1. Zoeb Lakdawala says:

      thanks ashal for your reply, just want to clear so by mid january i show all the HRA documents, and while filling returns I should show the possession to claim principal as well as interest. Is that understanding correct? Or right now i should only claim the stamp duty registration and then while filling returns I should show the interest claimed for this year. I am sorry for my shallow understanding of income tax returns as I am quite naive.

      Regards

      Zoeb Lakdawala

  5. Dear Zoeb, You can claim HRA benefit for the current FY.

    If your EMI’s are already started, you may claim Principal repayment tax benefit under section 80C within the over all limit of 1L Rs.

    To avail Tax benefit on Interest paid towards housing loan, the possession of house is precondition.

    thanks

    Ashal

    1. Zoeb Lakdawala says:

      Dear Ashal,

      Thanks for your prompt reply, but my doubt is I will getting the possession of the house in the month of march, but for that i have to declare right now as i am working in IT company and the tax collection process starts in the mid january.

      Regards

      Zoeb Lakdawala

  6. HRA – Definitely Yes

    You can claim interest and principal deduction only after you take possession of the house regardless of when your EMI started.

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