Hra (rent) & intrerest of home loan.

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2013 Dear Sir,

Our one employee has taken home loan but not take the possession of home. he lived on rented house.

my query is that can he take the benefit of both -home loan interest & HRA (rent) ???

Please suggest.

Regards,

Rajendra

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

19 February 2013 According to the section 24(b) interest on housing loan allowable from the year of possession of house and interest upto the immediate previous ending financial year is allowable as pre-construction interest as 5 equal installments from the year of possession. So HRA and interest on housing loan doesn't consider at the same time and for the same period.

In case if the possession taken place in the middle of the year then upto the possession of house HRA shall consider and from possession interest shall consider.

OM SAI SRI SAI JAI JAI SAI

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

19 February 2013 So for your case both HRA and interest on housing loan doesn't allow because of possession of house not taken place so only HRA allowable.

OM SAI SRI SAI JAI JAI SAI

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