Hra and home loan interest same year

Tax queries 550 views 3 replies

Yuvaraj

35 Points Posted on 10 February 2014

Hi All,

I have simple query on HRA & Home Loan Interest to be claimed in same year.

I have purchased flat in FY-2011-12. Started Loan FY-2012-13 (Princiapl + Interest)

I got possession in Dec 2013.

Now I sarted living in my own house. Till Dec-2013 I was stayin in rented apartment.

I have below queries -

1. Can I claim HRA for rent paid till Dec 2013. in FY 13-14.

2. If I claim, HRA, Am I eligible to claim House Loan Interest in FY-13-14. (i.e. HRA for 9 months & Interest of whole year.)

3. My interest component in less than 1,50,000 in FY-13-14. Can I claim last year's Interest into current financial year.

regards,

Yuvaraj.

Replies (3)

Jim Cyriac

CA in Practice

44 Points Posted on 11 February 2014

Claim HRA till the date of registration and claim the Sec 24 interest too

Yuvaraj

35 Points Posted on 13 February 2014

Thanks Jim.

What do you mean by Registration... I have registered it with Govt in last FY i.e. after booking flat. without registration i would not have recieved home loan.

I got the possession now in Dec 2013.

regards,

Rohit Gupta

Audit Executive

271 Points Posted on 13 February 2014

Dear Yuvraj,

1) The exemption of HRA is available u/s 10 of the Income Tax Act. It is not written anywhere that if the person is claiminng the Home Loan interest exemption u/s 24(b) then he is not eligible for HRA exemption. So, yes u can claim HRA deduction upto 31st December'2013.

2) You can claim the deduction oh Home Loan interest for the whole year as per Section 24(b).

3) Yes, u can claim the interest paid during the previous year. But only 1/5 th of that will be allowed. U can claim the remainning portion(4/5th) in next 4 years (1/5th each year) in case the interest paid by u in those 4 years does not exceed 1,50,000.

Regards

Rohit Gupta

RHT1203 @ GMAIL.COM