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Doubt on House property

Ramshankar (Executive Internal Auditor) (198 Points)

26 February 2009

Hi,

My friend working in MNC and getting HRA & During financial year Oct 08 he started construction of House property by taking bank loan.

My question is whether he can claim HRA & loan payment(Interest & Principle)

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6 Replies

Abhinav Agarwal (M.Com C.A SAP Consultant) (814 Points)
Replied 26 February 2009

You can claim HRA. House Loan will hv 2 treatments:

1. Interest will be allowed for pre construction period in 5 equal installment after it is constructed.

2. Principal re-payment can be claimed u/s 80C

C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 26 February 2009

Originally posted by :Ramshankar
"	My question is whether he can claim HRA & loan payment(Interest & Principle)

Dear Abhinav sir,

Can he claim for both?

suneet (CA FINAL) (421 Points)
Replied 26 February 2009

he can claim both

Ashish M (Chartered Accountant) (2731 Points)
Replied 27 February 2009

YES HE CAN CLAIM BOTH.......

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 27 February 2009

Ram Shankar

Yes dear u can claim both. I think you have written that he has started construction from oct-08. Upto period when the house construction is completed , you claim HRA .Scenerio is changed when house is completed. If you construct the house in same city where you reside on rent , then only you claim either of the deduction.

For any clarification mail me on sorabh.gupta @ ambujacement.com

Regards

CA. Sorabh Gupta

Deepak Jha (Student) (39 Points)
Replied 28 February 2009

Dear Ramashankar,

I m fully satisfied with the Sorabh's answer. Your freind can claim interst as a deduction only on the completion of construction as preconstruction interest, over the period of five years.

So now your freind can claim only HRA,