Qeury on tax exemtion for home loan 2013-14

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srinivas

software engineer.

36 Points Joined August 2013

Hi All,

Background:

In the FY 2012-13 I have applied for a home loan from HDFC. The loan got approved and HDFC arranged the disbursement cheque ready informed to come and collect the cheque. Due to personal reasons I had to cancel this loan and Apartment purchase.

In the FY 2013-14 I have decided and purchased the apartment which is under construction and possession is going to be in March 2014. I am going for loan around 24 Lakhs from the same HDFC. FYI, my flat cost is less than 40 Lakhs.

Need some of the clarifications for the below queries:

1. HDFC official suggested me to use the same loan account which i had opened in 2012 and they can disburse the amount applied loan now in FY 2013-14.

In this case can we claim the additional 1 Lakh (In addition to the existing 1.5 Lakhs, thats what i understand from 2013-14 taxation. Correct me if i am wrong) on the interest payable on my loan? Or the loan account also should be opened in this financial year to get benefit from additional 1 Lakh tax exemption?

2. What if I don't take the possession in this FY 2013-14 rather take it in FY 2014-15? Can I still claim the interest paid on my home loan during FY 2013-14?

3. Under what sections I need to claim the principle and interest paid on loan amount?

Thanks in Advance,

Srinivas

Replies (3)

CA Suri Kota

Assistant Manager @ EY

955 Points Joined November 2007

1. There is no prob with the account opened in FY 12/13.

Still you can claim the benefit of additional 1 Lac only if your are sure enought to get the posession before 31st Mar 2014 in addition to 1.5 lac.

2. If you can not get the posession by 31st Mar 14, simply you need to pay taxes on additonal 1 lac claimed earlier.

3. U/s 80C, you can claim the principal component as deduction, where as interest can be claimed under Income Under House Property Provisions.

You can declare your details to employer. He will take care of the provisions accordingly.

Suri

srinivas

software engineer.

36 Points Joined August 2013

Hi Suri, Thanks for the reply. Your reply raised two more questions in my mind as below.

1. If i don't occupy the house on or before 31 March 2013, can I still claim the existing 1.5 Lakhs on the interest along with principle amount on the loan or is it like i am not eligible to claim 1.5 Lakhs on interest ?

2. If i don't occupy the house on or before 31 March 2013, can I still be able to claim the HRA along with the components(Principle amount on loan and 1.5Lakhs on interest) mentioned in the above question?

Thanks,

Srinivas

sanjana

article

80 Points Joined October 2011

Hi Mr.Srinivas,

"If i don't occupy the house on or before 31 March 2013" - I guess you mean 31st march 2014. Additional one lakh interest exemption allowed oly for self occupied property, so in my opinion the property must be occupied on or before 31march 2014

And if the property is not self occupied on or before 31march 2014, u are eligible for HRA deduction, once self occupied HRA exemption cannot be claimed. Someone pls correct me if am wrong.