Deduction under sec 24
This query is : Resolved
23 September 2013
presently i am staying in a rented house against which my company pays me house rent allowance. I had booked a flat for self occupancy which is in running construction. For that i have taken a loan from icici bank. now the entire building is being constructed and completed with work undergoing inside the flats. now my home loan instalments have started which i am paying with interest. no possession has been given to me till yet. can i claim deduction under sec 24 for the interest paid by me or continue to claim exemption under HRA . kindly suggest
24 September 2013
Suparna,
Two Things.
1- In general, you can claim both, the HRA as well as Interest deduction under Section 24.
2. As long as the house is not ready, you cannot claim, interest deduction.
Once the house is done, if you continue to reside in the rented accommodation, kindly claim both HRA and section 24 benefits.
Interest accumulated till the year prior to the year in which construction is completed, can be claimed in 5 equal yearly installments starting from the year in which house was constructed.
For eg: If the house is completed in FY 2013-14. Interest paid till FY 2012-13 is Rs 100000. Then you shall claim in FY 2013-14 Rs 20000+ interest for FY 2013-14.
And continue this process for next 4 years.
Two Things.
1- In general, you can claim both, the HRA as well as Interest deduction under Section 24.
2. As long as the house is not ready, you cannot claim, interest deduction.
Once the house is done, if you continue to reside in the rented accommodation, kindly claim both HRA and section 24 benefits.
Interest accumulated till the year prior to the year in which construction is completed, can be claimed in 5 equal yearly installments starting from the year in which house was constructed.
For eg: If the house is completed in FY 2013-14. Interest paid till FY 2012-13 is Rs 100000. Then you shall claim in FY 2013-14 Rs 20000+ interest for FY 2013-14.
And continue this process for next 4 years.
24 September 2013
Thank you very much
04 October 2013
The expert is correct and as the house property is not fit for stay you cannot claim rather the installment can be capiotalised.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Refund Annexure-B
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Subscription paid to foreign customer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
