Doubt about tax benefit from home loan.

01. If the construction of flat is likely to be completed by Jan/Feb 2013, to the date of compeletion u can claim the interest paid towards housing loan as PRE CONSTRUCTION INTEREST which is allowable in 6 installments  as per income tax act 1961.

02. U can claim HRA and Loan EMI simultaneously , bcoz the condition exists that u need to pay rent for claiming HRA.

Thanks for clarification. However, you mention that pre-construction interest is allowed for tax benefit. What about the pre-construction "principal" amount paid? Is that also allowed or not? Thanks.

Pre construction interest means the only interest paid during the construction period until the completion and not the principal amount....

But u can claim the principal amount under 80 deductions yaar.....

I am paying rent for my residence and booked a flat which is under construction. The flat is likely to be handed over during Jan/Feb 2014. 

Can I claim both rent paid (  HRA ) and interest paid for my bank loan for the property til Jan/Feb 2014.

Janarthanan,

Chennai.