House Propery & HRA

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This query is : Resolved

Kashyap Joshi (Querist)

25 May 2009 Suppose a person books a house,which is under construction and the possession will be given in DEC. 2010. There is an agreement to sell. (Down payment for booking being Rs 4 lacs).

Now, till DEC. 2010, the person stays in a flat from 1st April 2009 to 30th Nov.2010, which is hired by him (rent being Rs.10,000 /- p.m.) and the company pays Rs.12,000/-. p.m. as HRA.

Loan from bank (Rs 24 lacs) is taken on 1st Oct. 2009 @ 10% p.a.

1) How the Total Income will be computed for A.Ys. 09-10 and 10-11 ? (Assume salary is Rs. 35,000/- p.m.).

2) Also, if in the case of the flat taken on rent, the deposit amount of Rs.30,000/- and rent is paid in cash, can the benefit be claimed in IT (is it sufficient to show the agreement) ?

chetan soni

chetan soni (Expert)

25 May 2009 answered.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

25 May 2009 For A.Y 2009-10.
1) Income from salary - 420000.00
Less: HRA u/s 10(13A) - (78000.00)

Balance: 342000.00

For A.Y 2010-11
1) Income from salary - 420000.00
Less: HRA u/s 10(13A) - (52000.00)

Balance: 368000.00

Less: Interest U/s 24(b) - (150000.00)

Balance: - 218000.00

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