I have decided to buy a home and loan application is in process. We would like to let out the property as we are staying in my in-laws house, in the same city as the property we are buying, Bangalore. Now can I claim interest exemption on the home loan interest from the next month itself even though possession date is either February or March 2013?

If Yes, I have to update the details in my company’ finance department so that tax is deducted appropriately. Moreover I would like to do this at the earliest because I don’t want to file for refund from the IT department. Also, If i can claim tax exemption on interest , then should I consider nominal rental value from next month itself or it will be from the date the property is rented out.