Tax exemption on home loan interest amount

POSTED BY kiranbgl ON October 16, 2013 9:06 am COMMENTS (2)

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.

2 replies on this article “Tax exemption on home loan interest amount”

  1. kiranbgl says:

    It is 2014, sorry for the confusion

  2. ashalanshu says:

    Dear Kiran, how can the possesion date be Feb march 2013? i assume you are referring to 2014. Well till the time possession is not with you, youy can not claim any tax benefit on interest part. Yes principal repayment benefit under section 80c within the over all limit of 1L Rs. can be claimed even before possession.

    Thanks

    Ashal

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