Hi,
I need some clarification through this forum on housing loan interest benefit and rental income.
Myself and my wife jointly booked an apartment and will be ready in Sep 2014. As of now we are staying on rent and are paying the rent jointly (both claiming HRA benefit on 50% of the rent).
Till Sep 2014, we shall be paying the pre-EMIs and after that full EMI. Now if we put the apartment on rent in Oct 2014 (say) and continue to stay on rent (adding rent generated to our income), will both of us continue to avail the HRA benefit and also the principal loan payment (upto 1 lakh for each) + full interest benefit? or only principal (upto 1 lakh for each) and interest upto 1.5L each would be available.
Basically idea here is make use of heavy interest payable on home loan.
P.S.: full EMI would be about Rs.85,000 per month (so interest component would be very high initially) and this house can generate rent of about 30K per month.
Ashish