29 December 2014
A employee resides in rented accommodation and acquire a house funded by bank but not getting possession during the year. He pays the installment during the year.
Please advice the employee can take benefit of HRA exemption as well as benefit of interest component u/s 24 (Loss from House property) and deduction u/s 80C for payment of principle amount within the limit of 150000.
29 December 2014
1. HRA exemption can be claimed. 2. Interest payment accumulate it and claim it over a period of 5 years from the year of occupation. 3. Principle repayment claim it u/s 80C.
29 December 2014
he can claim HRA and intt during the construction period he can claim in 5 equal in installments in five year from in which he get the possession of house.
30 December 2014
He has to satisfy the conditions.
Applicability- Benefit of this section can avail by Individual assessee. Deduction under this section is not available for any other assessee (like HUF, firm etc.). Individual can claim benefit under this section only when all the following conditions are satisfied, these are- Purchaser should be first time buyer. i.e. he has never purchased any house and now he is going to purchase a house. Value of the house should not more than 40 lakh. Loan taken by Individual for the purpose of buy a house should not be more than 25 lakh. On the date of sanction of loan individual does not have any own residential house property. Loan for this purpose taken by individual should be from the Financial Institution or Housing Finance Company. For this purpose, loan should be sanctioned between 01.04.13 to 31.03.14. U/s 80EE (4) - Provides that where a deduction under this section is allowed for any interest payable on loan only when deduction shall not be allowed in respect of such interest under any other provisions of the Act for the same or any other assessment year. Quantum of Deduction- Assessee can take deduction u/s 80EE on interest payable on home loan upto 1 Lakh in A.Y.2014-15. It can claim deduction in two assessments year. Means if whole amount of interest payable upto 1 lakh is not claim as deduction in A.Y.2014-15 then remaining balance amount upto 1 lakh can claim in A.Y.2015-16.Total deduction under this section shall not be more than 1 lakh.
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