Home Loan Query

Hello Dear Members! I have a query regarding a new house purchase.

Details about me: Working in a Pvt. Ltd. Company with a basic pay of Rs. 40,000 p.m. No other benefits like DA etc. Currently leaving in a rented house having a rent of Rs. 6000 p.m. The Rent is reimbursed by the Company in the form of House Rent Allowance.

- one side u declare " no other benefit" another side ...HRA above your salary ......................

Details about the house: 1000 sq. ft. House costing approx Rs. 22 Lacs. At present under construction & will be handed over in the next 3 years. Specific amounts have to be paid at various stages during the period of the construction of the project.

There are various options available to me. Kindly suggest in Detail in which direction should I proceed. I am 100% sure that Experts here can solve my query.

Options Available


1. Co. pays the full amount of Flat & purchases the Flat in my name.

2. Co. pays the full amount of Flat & purchases the Flat in its own name & then gifts / transfers the Flat in my name after say 3 years on its completion.

3. Co. gives Interest free Loan to me for purchase of House & I repay the Loan.

4. I take the Loan from Bank & Co. pays the EMIs.

5. I take the Loan from Bank & pay the EMIs. Ang get the amount reimbursed from the Company.

 - for what interest company will reimburse your loan? 

- book entry in business of family as salary may run your file for a while, but it can not help u in long run. 

Kindly suggest the best suitable alternative from Incom Tax perspective -

i. Taking into consideration HRA of Rs. 6000/-

ii. Without taking into consideration HRA of Rs. 6000/- [i.e. when Co. pays EMI etc. it stops giving HRA]