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Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2013 I took home loan in the month of February 2013 and I decided to pay the entire EMI from the first month itself.

Apartment is under construction and will be ready only after August2014.

Bank has disposed half of the sanctioned loan amount to the builder till now. (Not full amount).

I am staying in the rented house and paying the rent also and the original EMI also.

Could you please let me know whether i get tax benefit for the interest amount i paid till now , if so what documents should i submit for the same?

Thanks & Regards,
Thripura

CA Pallav Singhania

CA Pallav Singhania (Expert)
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07 November 2013 You will be eligible to claim both the interest and principal components of your repayment during the year.

Interest can be claimed as a deductionunder Section 24. You can claim up to Rs. 150,000 or the actual interest repaid whichever is lower. (You can claim thisinterest only when you are inpossession of the house)

Principal can be claimed up to the maximum of Rs. 100,000 under Section 80C. This is subject to the maximum level of Rs 100,000 across all 80C investments.

You will need to show the statement provided by the lender showing the repayment for the year as well as the interest & principal components of the same.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2013 Thanks a lot for your reply.
That means, i am eligible for:

HRA for which i am paying the house rent.
Tax benefit for the emi that i am paying for home loan.

Please confirm.
Thanks & Regards,
Thripura