Claiming tax benefit on housing loan

POSTED BY Harish ON November 15, 2012 6:18 pm ONE COMMENT

Hello Sir,

I am really happy with your forum and the way you sort out the queries of people. A  great thanks in advance for sorting my query.

I stay in a rented accommodation in Bangalore and claim HRA for it. I recently purchased an apartment in Bangalore by taking a home loan of Rs 25 lakhs on 26 April ’12. I started re-paying the full EMI (Rs 30604/) from the very first month (June’ 12). I got my apartment registered in Sep 12. (The finishing work and interiors are going on for 3 months and my brother will be moving to this apartment in Dec 12.

I had a few queries in claiming the tax benefit on my loan.

1.       What period is to be considered for the calculation purpose?

2.       Should I claim my apartment as let out or self occupied as my brother would be living here.

3.       It would be of great help if you could illustrate the better benefit in my case.

The rental value in the area my apartment stand is around 6000 – 7000 for a 2 BHK.

Thanks a ton,


One reply on this article “Claiming tax benefit on housing loan”

  1. Biswa Singh says:

    1. As you property has been registered you can claim the tax benifit on the interest component of 1.5L and principla of 1L (this is the 1L limit you get to show your investment).

    2. you will definitely rent your apartment to your brother so this will be added to your income.

    3. It seems to me its the only benifit you will get. Can’t think of anthing else.

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