Hra exemption and house property loss

Save Share

This query is : Resolved

Liju (Querist)
Follow

07 January 2013 Can I claim HRA exemption and House property loss at the same time. I am working in same city where I am constructing the house, but the construction is not yet completed,still I am staying in a rented house, and the Loan EMI has started.Or can I claim the interest as pre-construction interest.Kindly help on this matter.

Anand

Anand (Expert)
Follow

07 January 2013 Based on facts provided, the construction of the property has not completed. You therefore cannot claim the interest paid on the EMI u/s 24 until the construction is completed. The bank will give you a certificate stating the pre-construction interest. this can be claimed beginning with the year in which you have obtained possession and over the next 4 succeeding years in equal installments.
In my view, you can in any case not claim both HRA and House Property Loss for Self Occupied Property unless you cannot actually occupy the house since employment business etc is carried on at any other place and you canot live in that SOP.

Liju

Liju (Querist)
Follow

07 January 2013 Thank You, One more clarification- Then till the completion of house construction can I claim the HRA exemption? and Can I claim principle portion now only under 80C?

Anand

Anand (Expert)
Follow

07 January 2013 Yes of course

Liju

Liju (Querist)
Follow

07 January 2013 What about the 80C deduction.. can i claim the same from now only or after completion?

Anand

Anand (Expert)
Follow

07 January 2013 There is no such restriction for claiming deduction of Principal under Section 80C even when the property is not completely constructed.

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

07 January 2013 in one case you can claim HRA exemption and interest u/s 24 when you are living in separate city and house is in separate city.
then you can claim interest u/s 24 and HRA exemption both if you are paying rent

Liju

Liju (Querist)
Follow

07 January 2013 Thank you Mr. Prashant and Mr. Anand for the valuable information.

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