Tax exemption on underconstruction flat's emi for different

Yes, certainly we can enjoy the tax benefits of home loan with HRA, as there is no relationship between claiming HRA tax exemption & claiming interest on home loan as both have independent provisions in Income Tax Act.

As for claiming HRA exemption, one should be living in a rented accommodation for which he should be paying rent. Further, if the home is ready to live in during financial year tax benefits of home loan can be claimed. Once the construction of home is complete, the HRA benefit stops.

Following benefits can be claimed:

1. Tax benefit on principal repayment under Section 80C – Repayment of Housing Loan
2. Tax benefit on interest payment under Section 24(a) & (b).
3. HRA benefit.

No, one cannot enjoy the tax benefits of own house with HRA, as one cannot pay rent to oneself. Hence, whole of HRA received becomes taxable under “Income from Salary”.

You have bought a house in Mumbai taking a home loan and you’re currently living in Delhi in a rented apartment because the house is under construction. In such a case, you are eligible to claim HRA.

In the case of tax breaks on the home loan, you can claim tax benefits only for your principal before the completion of your house. Once your house is completed, you can claim tax benefits on the total interest paid upto the date of completion in five equal installments in five years begining from the year of completion.