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Income tax Computation

Suhas M (Executive Finance & Legal) (45 Points)

17 February 2010

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

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5 Replies

CA RAJENDRA PANDEY (ACA B. Com AMFI NCFM NISM) (327 Points)
Replied 17 February 2010

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)
Replied 17 February 2010

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

Hitesh S Dholkiya (B.com, CA Final) (40 Points)
Replied 17 February 2010

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)
Replied 18 February 2010

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

Amir (Learner) (4016 Points)
Replied 18 February 2010

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....