Income tax against home loan
This query is : Open
15 May 2016
Hello Sir,
I have taken a home loan of 30 lakh from Hdfc bank in April 2016.
The property is under construction and the possession will be given by the builder in March 2017.
The first disbursement of Rs. 1820625 was dome to the builder in April and I have started paying the EMI of Rs. 19012.
The disbursements of balance loan amount will be done quaterly starting from July 2017.
Currently I am staying in rent of Rs. 8000 per month.
Can I declare both, the rent and home loan EMI interest in the investment declaration for FY 2016-17 and take the tax benefit?
Or is it that I can only claim the home loan benefit after getting the possession?
Please advice as I have already started paying home loan EMIs.
Our finance is saying that I can take the home loan benefit after taking the possession only.
I have taken a home loan of 30 lakh from Hdfc bank in April 2016.
The property is under construction and the possession will be given by the builder in March 2017.
The first disbursement of Rs. 1820625 was dome to the builder in April and I have started paying the EMI of Rs. 19012.
The disbursements of balance loan amount will be done quaterly starting from July 2017.
Currently I am staying in rent of Rs. 8000 per month.
Can I declare both, the rent and home loan EMI interest in the investment declaration for FY 2016-17 and take the tax benefit?
Or is it that I can only claim the home loan benefit after getting the possession?
Please advice as I have already started paying home loan EMIs.
Our finance is saying that I can take the home loan benefit after taking the possession only.
16 May 2016
the interest paid upto posseion of house in allowed as deduction if five equal annual instalments after posssion is taken
CA MANOJ GUPTA
JODHPUR
9828510543
CA MANOJ GUPTA
JODHPUR
9828510543
16 May 2016
Thanks Manoj Ji
16 May 2016
Yes. You can take the benefit of interest paid on loan and also the principal amount only after the construction is completed and completion certificate is obtained. However, the interest paid for the pre construction period shall be deductible in 5 equal installments commencing from the year in which the construction is completed. At present you can take the benefit of the rent paid u/s 80GG if not in receipt of HRA.
16 May 2016
Thanks Sudipta ji
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Opting our of sec 44AD
- Value of property in capital gain
- Regarding TDS Applicability For Director Remuneration
- Multiple trade mark
- LC charges in relation to Asset purchased should be Capitalised ?
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Copyright software
- Transporter Declaration form
- Applicability of GST on deduction for cancellation of Pension policy
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
