Income tax : Home loan and HRA benefits ; Can I claim HRA and Home loan TAX Benefits (Joint loan with my spouse) if have a house (ready for occupation) but I cannot reside in it. I reside in parental house and “pay rent” to “my father” in the “same City”

POSTED BY Nitin ON January 5, 2013 11:19 am COMMENTS (5)

5 replies on this article “Income tax : Home loan and HRA benefits ; Can I claim HRA and Home loan TAX Benefits (Joint loan with my spouse) if have a house (ready for occupation) but I cannot reside in it. I reside in parental house and “pay rent” to “my father” in the “same City””

  1. Jagdish Gahlot says:

    Thanks to both of you, really help this forum in all manner.

  2. Dear Jagdish, I’m giving below an example to solve your query.

    Say till FY 2012-2013 i.e. 31st march 2013, total interest paid by you is 200000 Rs. (interest during under construction phase).
    You get the possession of your house in FY2013-2014. Now what?

    In the FY 2013-2014, full interest + 20% of 200000 Rs. which is 40000 Rs. within the over al limit of 150000 Rs. for self ocupied property ‘ll be available for you. In case you put the propery on rent from day one, The ceiling of 150000 Rs. ‘ll not be there & full interest of FY 2013-2014+400000 Rs. from old interest, ‘ll be available for tax benefit.

    What to do if employer is not considering the prev. interest? Please do not worry, you can claim the same at the time of filing of your income tax return i.e. for FY 2013-2014 in June July 2014.

    thanks

    Ashal

  3. “employer has not agreed for the interest rebate for previous year’s paid amount.”

    You mean your employer has not agreed to take this into account for form 16/TDS calculation?

    If yes you can still show this in your returns and the claim refund. Of course you need to keep all relevant documentation safe in case there is an query from the IT dept

  4. Jagdish Gahlot says:

    I have read the above link what you mentioned which is quite informative. Just want to highlight one point.

    I have a home loan for an under construction flat, and paying rent for the flat where I am residing. In the link it is mentioned that …”In the case of tax breaks on the home loan, you can claim tax benefits only for your principal before the completion of your house. Once your house is completed, you can claim tax benefits on the total interest paid upto the date of completion in five equal installments in five years begining from the year of completion.”…

    So here I can claim the Interest paid in 5 years but how? because employer has not agreed for the interest rebate for previous year’s paid amount. so how would file this?

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