HRA and Housing Loan Repayment benefit (if house is under construction)

Sir, I have purchased a house (Under construction) in the same city I live (Lucknow) on rent. I have paid 100% amount to the builder after taking approx 40% loan from HDFC Bank have been repaying principal + interest since July 2011. My newly purchased house is still under construction an expected to get possession by Dec-2013

My question is as given hereunder:

  1. Can I claim HRA tax benefit ?
  2. Can I get tax benefit on Principal amount repaid to the bank ?
  3. Can I get tax benefits on the interest paid to the bank ?
  4. Tenure of my Loan reapayment is 4 years

Kindly reply.

Kapil [email protected]

asked Apr 17 '12 at 17:24 by kapilmudgal 1111

  1. You can continue getting HRA tax benefit till the month of possession of new house.
  2. Tax benefit on principal payment cannot be taken before year of possession.
  3. Tax benefit on interest payment also cannot be taken before year of possession. But interest paid before year of possession can be claimed in five equal installments starting from year of possession.

answered Apr 18 '12 at 19:33 by Pankaj Batra 5.2k320


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Asked: Apr 17 '12 at 17:24

Seen: 2,740 times

Last updated: Apr 18 '12 at 19:33