Income tax Computation

531 views 5 replies

Suhas M

Executive Finance & Legal

45 Points Joined December 2009

Hi,

An individual availled Housing loan of Rs. 2800000/- in the month of September 2009. He has already paid Rs. 32000/- towards Interest during this financial year. Still the house is under construction so he is living in a rented house. In this financial year he is claiming HRA benefit for the entire year & he also wants to claim Interest paid on Housing loan. So Kindly guide me in this matter. Can we consider both HRA & Interest paid on Housing loan(House is under construction).

Thanks & Regards,

MS Rao

Replies (5)

CA RAJENDRA PANDEY

ACA B. Com AMFI NCFM NISM

327 Points Joined September 2007

u can not take benefit of interest U/s 24. It is pre construction period intt., it should be adjusted in next 5 years.

Mubarak Hussain

CA - Final

127 Points Joined January 2010

Rajendra Pandey is right u can not take benefit of interest U/s 24.

Hitesh S Dholkiya

B.com CA Final

40 Points Joined August 2009

hello sir ....!

u can take the benefit under section 24 as pre construction period.........!

That can be adjusted in 5 years.......!

Ganesh

Final

87 Points Joined November 2009

you can claim pre construction period interest over a period of 5years

Amir

Learner

4016 Points Joined December 2009

Dear M.S Rao,

HRA Benifit/Exemption & Deduction of Housing Loan repayment (principal +Interest) can be claimed together, no problem with that..

Further, agree with other friends that unless construction gets completed Loan benefit will not be allowed...

Interest of preconstruction period will be allowed in 5 equal annual installments...whereas principal of preconstruction period will not be allowed at all....