Hi, I am staying in a rented appartment and recently bought a house in resale (so property is ready to move) in the same sector where i live in.But i will not be moving in during this financial year so until march the bought property is going to be vacant.
I have taken house loan to purchase this property and hence paying EMIs' for that.
Is it possible to take income tax benefit of HRA and House loan principal/interest payment both?
Please advise.
In my opinion, you can receive benefit of HRA for rent paid by you and Interest/Principal on loan paid for house loan taken as both are difference point.
You are eligible for housing loan benefit but not for HRA as the house is situated in the same sector where you are living on rent.
Thanks for the suggestions guys.
But do i need to show some notional rent/ rent for the house which i purchased? if yes then is there any guidelines on how much rent shall i show?
Or it can be claimed straight?
Thanks,
Asheesh
Hi Guys, I am more confused now.
I think i can claim HRA for sure as i am actualy paying the rent.
For the home which i purchased , i can show it on rent and claim tax benifit for principal and interest for the housing loan. Isn't it correct?
Thanks,
Asheesh
You can claim interest and home loan benefit but not HRA as you are living in the same city on rent in which you also owe a house property of your own which is ready for possession but you are not moving in.
CAclubindia
