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Permissible deduction under both hra or hp/ u/s 80ee

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jabarson s

student

22 Points Posted on 10 December 2014

Dear,

Situation:- Building is under construction and EMI is paying nowonwards and residing in Rented house for time being. (Salaried E'lee)

Problem:- Is it possible to claim deductions under both HRA and under House property or u/s 80EE for the Interest on House loan on construction, though it is self-occupied and all terms are fulfilled in relation to above.

Kindly reply at your earliest convenience.

Replies (2)

Gagan Deep Singh

CHARTERED ACCOUNTANT

1039 Points Posted on 10 December 2014

Deduction of interest under Section 80EE is available only in case of ACQUISITION of house. So you cannot avail benefit of this section. You can claim exemption for HRA under head "salary" as per section 10(13A) read with rule 2A.

You can avail deduction for pre-constrution interest u/s 24 for 5 successive Years from the year in which construction is completed. In other words you can avail deduction of interest in 5 equal installments from the year in which construction is completed which you have paid/payable before the construction period.

Morever you can also avail deduction under section 80C for the repayment of principal amount.