Housing loan tax benefit

This query is : Resolved

Sachin B.Kumbhar (Querist)
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28 February 2013 Dear Sir/Madam,

Pls. advice if I can avail the Housing loan exemption under Chapter IV-Housing Loan Interest up to Rs.150000/- PA & U/S 80CE Housing Loan Principal Repayment up to Rs.100000/- PA in below conditions.

1. I am staying in rented house with a rent of Rs.3000/- PM. & claiming the HRA benefit u/s 10 (from 01.04.12 to 31.03.13)
2. House is under construction yet. (expected to complete at the end of Mar’13)
3. Property is in my father’s name.
4. I have borrowed a Housing loan from Bank of Maharashtra-Khanapur as a co-applicant & paying EMI of Rs.8500/- Pm from Jan’13 onwards
Regards,

Sachin B. Kumbhar

Santosh Mishra

Santosh Mishra (Expert)
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09 March 2013 1) Yes, you can claim the HRA benefits.

You can not claim benefit for Interest and Principal as you are co-applicant only. You also need to be a co-owner in the house to claim the benefits.

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Sachin B.Kumbhar

Sachin B.Kumbhar (Querist)
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09 March 2013 Thanks Sir,
This property (Plot) is belongs to my Father who is a 61 years old & fully depended on me,I have borrowed the loan & paying installments out of my Salary Income. I have two younger brothers too & they have no objections for the same... Pls. elaborate the proper meaning of Co-owner in this case....

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Santosh Mishra

Santosh Mishra (Expert)
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09 March 2013 Unfortunately, you have to be one of the owners to claim the benefits.

If the property is owned by two or person as per the registry, deed, POA etc, they all are called co-owner.

Sachin B.Kumbhar

Sachin B.Kumbhar (Querist)
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09 March 2013 Is it means, I cannot claim the benefit of Interest & Principal amount paid by me?...

Can I get that property transferred on my name now...
After this from which date I can get the benefit of Interest & Principal amount paid by me?
Also can i get the benefit of HRA exemption along with the benefit of Interest & Principal amount paid by me?

Santosh Mishra

Santosh Mishra (Expert)
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09 March 2013 Yes, property is transferred in curreny FY ( before 31st March ), you can avail exemption for Int and principal from current year itself. Means you can start availing benefits from the year in which property is transferred in your name.

Yes, one can claim both HRA and house loan benefit subject to meeting certain conditions.