Income Tax saving on Home Loan

amit katkar 6
Viewed 1510

Hi Pankaj,

I am staying on rent since last 2 year and my rent agreement has expried on Jun 2011. I have not made any agreement thereafter. Now, I have applied for Rs 1400000 /- home loan and my first PreEMI cheque of Rs 6800 /- will be deducted on 30th Dec 2011. and first full PreEMI of Rs 12000 will be deducted on 10th Jan 2012. The home for which i have taken this loan is still under construction and probabily i will get the possession before end of Jan 2012.

Can you pleae suggest how i can use this data for saving income tax for FY 2011-12.

pre-emi possession-year under-construction home-loan income-tax
1 Answers

If you are able to get possession of house before 31st March, 2012, you would be able to claim home loan interest and principal payment tax benefits.

Max 1.5 lakh can be claimed for interest payment in a year u/s 24.

Principal payment can be claimed u/s 80C upto max limit of 1 lakh total (this limit includes other tax saving components like tax saving mutual funds, insurance, NSC, NPS, EPF, PPF etc)

As you will be getting own house in Jan 2012, you can also claim HRA deduction upto Dec 2011 for rent paid.

Pankaj Batra5212

Thanks Pankaj, As i update you that my rent agreement got expired in jun-11. can i use rent receipt. I dont want to make any agreement as in next month i will be shifting to my new home.

Please suggest. Thanks Once again.

amit katkar•

Thanks much Pankaj,

As i have already informed you that my rent agreement got expired on Jun 11, Can i use rent receipt as HRA Proof and submit to Income tax Office.

I dont want to make any agreement as i am moving to my new house before March 2012.

Please suggest. Thanks once again.

amit katkar•

You can show rent receipts for HRA exemption to your employer. This cannot be submitted to IT department along with income tax return, so has to be deposited with employer.

Pankaj Batra•
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