Income tax declaration- house loan

1.  The deduction for interst paid before posession is allowed in 5 equal installments starting from the year in which the house is purchased or the construction is completed u/s24.

Though pre construction interest is allowed to be deducted on the basis of 1/5th each year the total amount that can be claimed in a year should not exceed Rs 2,00,000 in case of a self occupied house property.

PROOF:

  (a) Letter of possession received from the developer.

  (c) bank statement showning EMI payment .

2. yes you can claim both interest deduction and HRA  . rent agreement and rent payment receipt must be maintained.

3. To be able to claim the tax benefits on joint loan you must satisfy both condition –

• You must be a co-owner in the property
• You must be a co-borrower for the loan

 The tax benefits are applied according to the proportion of the loan taken by everyone involved in the joint loan. For e.g. if the ratio of ownership is 70%:30% then the loan amount of 50 L will be split as 35 L and 15 L respectively and interest/principal applicable to the respective amounts will be taken into account for each individual taking the loan.

For claiming your tax, it is best to  procure  a home sharing agreement, detailing the ownership proportion in a stamp paper, as legal proof for ownership.