Hi, I have a home loan for which I started paying EMIs from April, 2010. The apartment is still under construction and I am living on rent in the same city where the apartment is being constructed. Can I claim the principal and interest repayment of this apartment for tax exemption in 2010-2011? As I have been paying house rent too in the same duration, can I claim HRA tax exemption too?
1 Answers
Exemption for home loan principal and interest payment cannot be taken before possession of house. You can claim HRA exmeption without any issue.
Once you get possession, you can claim exemption on interest paid in previous years in five equal parts in next five years (including the year of possession).
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