Doubt on House property

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

Dear Abhinav sir,

Can he claim for both?

he can claim both

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

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

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,