Claiming income tax Benefit for both HRA & Home Loan Interest

POSTED BY kharawanehn ON May 2, 2014 4:13 pm COMMENTS (4)

Hi Guyz,

I have purchased under construction house in Feb 2013 on and it’s possession would be in Nov 2014. It will be self occupied property after possession. My questions regarding income tax benefits are-

1) In this scenario do I have to claim tax exemption in FY 2013-2014 as follows?

a) Tax Exemption for HRA under section 13A  from Apr 14 to Oct 14  i.e. for 7 months till home possession did not happen

b) Tax Exemption for interest part of home  loan paid after possession i.e. from Nov 14 to Mar 15 under section 24b?

2) OR M I eligible only to claim either of HRA or home loan interest for 2013 -2014? In that case can I claim only interest or HRA (whichever is beneficial for me) for whole year 2013-2014 irrespective of the fact that i will take my home possession only in Nov 2014 and would be on rent from Apr14 to Oct14?

 

If point 1 is correct i.e. I have to claim both HRA and home loan interest then max limit of interest claimable is 1.5 Lacks for self occupied property. So I have to sum up interest paid from after possession i.e. Nov14 to Mar15 + (interest paid in pre occupied period from Feb 13 to Nov14)/5

Please tell me if this understanding is correct?

 

Please advice how to deal with this HRA and interest part of home loan in my case.

 

Your advice much appreciated.

 

Thanks in advance.

4 replies on this article “Claiming income tax Benefit for both HRA & Home Loan Interest”

  1. kharawanehn says:

    Hi Ashal,

    What is rule to claim the principle component of Home Loan under 80C?
    It can be claimed always irrespective of whether the construction is complete or not?

    Please reply ASAP as i am gonna fill the investment declaraion now.

  2. ashalanshu says:

    Dear Kharwane, interest benefit for whole FY is available subkect to limit of 1.5L Rs.

    thanks

    Ashal

  3. kharawanehn says:

    Thanks Ashal,

    That means my understanding mentioned in point no 1 is correct?

  4. ashalanshu says:

    Dear Kharwaneh, HRA benefit ‘ll be available till Oct 2014 from April 2014. Interest benefit under section 24 (b)’ll be limited to 1.5L Rs. (including unclaimed interest from FY 2012-2013 and 2013-2014 @ 20% and FY 2014-2015 full interest).

    Thanks

    Ashal

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