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Investment declaration for tax exemption on home loan

Abhishek Verma (Others) (25 Points)

15 April 2014

I have bought an under construction property in year 2012-13 (feb'12) and taken a home loan against it.
Now possession of this property is in financial year 2014-15 (January 2015). Since I will continue to stay in current rented accommodation only for this whole financial year. Also I will not rent out my house after possession. What is maximum tax benfit I can get alongwith my HRA ?

Please find the year wise data of interest paid and guide me how to fill investment declaration form

FY	Interest Paid

2012-2013	2579

2013-2014	244664

2014-2015 (Proposed)	282261

Your early assistance would be highly appreciated.

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4 Replies

(Guest)

"I have bought an under construction property in year 2012-13 (feb'12) and taken a home loan against it.
Now possession of this property is in financial year 2014-15 (January 2014)."

You have not quoted the financial years properly so I cannot comment on the interest deduction.

Financial year is the year in which the transactions take place.

Purchase of under construction property in Feb 12 (FY 2011-12)(AY 2012-13)

Possession of this property in Jan 14 (Fy 2013-14) (Ay 2014-15)

You can claim interest on housing loan actually paid from 1/4/13 to 31/3/14 maximum upto Rs 150000/-. This is assuming that you have to stay in rented accomodation due to employment reasons.

Abhishek Verma (Others) (25 Points)
Replied 16 April 2014

I have corrected it now as possession date will be January 2015, kindly provide your input now.

Originally posted by : Madhavi Pandit
	"I have bought an under construction property in year 2012-13 (feb'12) and taken a home loan against it. Now possession of this property is in financial year 2014-15 (January 2014)." You have not quoted the financial years properly so I cannot comment on the interest deduction. Financial year is the year in which the transactions take place. Purchase of under construction property in Feb 12 (FY 2011-12)(AY 2012-13) Possession of this property in Jan 14 (Fy 2013-14) (Ay 2014-15) You can claim interest on housing loan actually paid from 1/4/13 to 31/3/14 maximum upto Rs 150000/-. This is assuming that you have to stay in rented accomodation due to employment reasons.

CA SUKSHAM ARORA (CA) (569 Points)
Replied 19 April 2014

ACCORDING TO ME,

IN CASE YOU WOULD START LIVING IN YOUR OWN HOUSE FROM 1/4/2015 OR AFTERWARDS THEN YOU SHOULD ADD ALL THE INTEREST WHICH IS EQUAL TO 529504.00 AND DIVIDE BY 5 (PRE CONSTRUCTION PERIOD INTEREST) =105901.00 TO THE MAXIMUM OF 150000.00.

THUS YOU CAN CLAIM DEDUCTION OF 105901.00 FOR THE FIVE YEARS STARTING FROM A.Y.2016-17(P.Y.-2015-16)

BUT YOU CAN ALSO WAIT FOR OTHERS OPINION

(Guest)

Rs 282261/- is your Housing loan interest payable from 1/4/14 to 31/3/15. You can get max Rs 150000/- as deduction u/s 24 for that in that year, ie, 2014-15 FY.

(1/5 th of pre completion interest also is allowable but the max amount is limited to Rs 150000/-) Additional interest deduction upto Rs 100000/- u/s 80EE will not be available to you as your loan has been sanctioned before 01 April, 2013.

In addition you can also get deduction u/s 80C for the principal amount paid max 100000/-.

This is assuming that you have to stay in rented accomodation due to employment reasons.