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HRA exemption and HOusing Loan Interest deduction

CHETAN SHARMA (Regional Operations Manager South) (28 Points)

14 June 2011

Hi..... An individual is living in a house on rent in Hyderabad City and his house is under construction in Hyderabad itself.

Can he claim HRA exemption and Deduction of House Loan interest at the same time???

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10 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 14 June 2011

sec 24(a) deals with only completed houses,

interest of pre-copletion would be availed in year of completion, (max 1.5 lacs for accumulated interest in previous 5 years)

valji (Accounts manager-MBA) (2150 Points)
Replied 14 June 2011

MR SHARMA IS RIGHT

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 14 June 2011

interest can be claimed after the completion of house.

pre - construction interest ( will be allowed in 5 yesrs)

post construction interest will be allowed in the year of accrue

Lav Patodia ,ACA (CS) (Finance Executive) (30 Points)
Replied 15 June 2011

Can I simultaneously avail tax benefits on my home loan and HRA?

The tax benefits for home loan and HRA are two separate entities and have no direct bearing on each other. As long as you are paying rent for an accommodation, you can claim tax benefits on the HRA component of your salary, while also availing tax benefits on your home loan. This could be the case if your own home is rented out or you work from another city etc. However, you need to account for any rental income you receive from the property you own under income from other sources.

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M.N.V.Surendra (FINANCE AND ACCOUNTS) (26 Points)
Replied 15 June 2011

--Currently you can cliam both, because house is under construction. INT amount during construction period can be claimed for five years after completing the house.

RANJITH KRISHNAN (STUDENT AND ACCOUNTS OFFICER) (42 Points)
Replied 22 June 2011

Hi friends

Please clarify my point if i am taking a housing loan and then i am claiming full interst deduction against my income .My query is if i am giving that house for rent whether i can claim full interest deduction against my income.If it is a self-occupied property then what will be the criteria for claiming.

While purchasing a house whatever exps i am doing that is registration chgs, stamp duty etc can i claim as a deduction against my income in that year.

Please clarify and in advance thanks to all

Regards

Ranjith Krishnan

Packers Movers (owner) (21 Points)
Replied 13 August 2012

--Currently you can cliam both, because house is under construction. INT amount during construction period can be claimed for five years after completing the house. packers movers

Packers Movers (CMA) (21 Points)
Replied 27 May 2013

thank you for sharing such a great information.

thanks

nagendra (ZM) (44 Points)
Replied 09 June 2013

Originally posted by : Lav Patodia ,ACA (CS)
	Can I simultaneously avail tax benefits on my home loan and HRA? The tax benefits for home loan and HRA are two separate entities and have no direct bearing on each other. As long as you are paying rent for an accommodation, you can claim tax benefits on the HRA component of your salary, while also availing tax benefits on your home loan. This could be the case if your own home is rented out or you work from another city etc. However, you need to account for any rental income you receive from the property you own under income from other sources.