Hello everyone,
I have bought a flat in Hydeabad that is under-construction and already paying the EMI. Further, i am also paying rent. Can anyone help me understand if i can get tax exemption on both i.e. HRA and Home Loan? If yes, is it calculated on standard basis or is there some other formula to calculate it? Would really appreciate your help. Thanks in advance!!
Regards,
Manish
Hello,
Tax benefit of repayment of principal part of the home loan is allowed only after the construction is complete.
The Interest that has been paid before the completion of construction should be aggregated and the whole aggregated amount shall be allowed as tax deduction in 5 equal installments for 5 successive Financial Years starting from the year in which the construction has been completed.
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