Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Hra eligibility

Save Share

This query is : Resolved

MVDV PRASAD (Querist)

13 December 2015 I took the housing loan recently from the bank on purchasing the plot.Still the construction of the plot is not at over. At this juncture shall I eligible to claim interest on housing loan as well as HRA both as I am staying in rented house at presently.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 December 2015 You can claim HRA only now. Accumulate the interest on housing loan till the completion of house and claim it over 5 years after completion.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

14 December 2015 Definitely till Possession of Plot you can Claim HRA. Deduction of Home Loan Interest cannot be claimed when the house is under construction.
The period from borrowing money until the construction period of house is called Pre-Construction Period. Pre-construction Interest Deduction allowed for Interest payments made deduction of the Pre-construction period is divided in 5 installments From the Year Which house is completed. Can be claimed Subsequent 4 years immediate to succeeding previous year in the year which Completion take place.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now