Interest on home loan payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2010 I am a central government employee and staying in government quarters. Recently, I have taken a home loan. I am going to pay around Rs.80,000 for this finanacial year as interest payment for the housing loan. I was told by my friend that I cannot avail this for tax exemption as I am residing in government quarters and also that I am not in occupation of the new house. Currently my new house is vacant and I am plaaning to move in a few months. I get HRA deduction from my salary for the same. Please advise me how I can avail tax exemption for home loan for this financial year. Currently I am paying around Rs. 2000 per month as IT tax.

CA.Pujah

CA.Pujah (Expert)
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01 February 2010 I need clarification on above querry.
U told
1) u are staying in Quarters
2) u are also getting HRA & u are claiming exmption on the same 2.

Still as for new house I would like to tell following:
If u move to the new house in this Financial year,i.e.2009-2010 (by 31.3.2010) then u can claim Rs.80000/- deduction in this yr itself.
But if you occupy new house in the next financial year,i.e. after 01.04.2010, the deduction will be available for next year's interest. This 80000/- will also be deductible but in 5 equal instalments in next five years.

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2010 Yes, I am residing in central government staff quarters and I am in getting HRA deduction from my salary.
Kindly advice me the tax treatment for the same.