18 December 2012
I am paying rent to my father by cash and I have submitted the receipts to my employer for claiming HRA exemption. But my employer insists that I should pay by cheque in order to avoid any issues in future. Is he right?
My second question is regarding repayment of home loan. I have taken a home loan for an under construction property and my EMIs have already been started. As the property is under construction, I cannot claim for the home loan interest rebate. But can I claim rebate against the PRINCIPAL amount repaid to the bank in current financial year?
18 December 2012
make sure your father takes the rent amount in his return of income tax. there is no provision as for cash and cheque and if father is taking in his return of income tax, then i dont see any issues.
Yes it can be claimed as it says epayment of amout borrowed by assessee "for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property”.