07 January 2013
Can I claim HRA exemption and House property loss at the same time. I am working in same city where I am constructing the house, but the construction is not yet completed,still I am staying in a rented house, and the Loan EMI has started.Or can I claim the interest as pre-construction interest.Kindly help on this matter.
07 January 2013
Based on facts provided, the construction of the property has not completed. You therefore cannot claim the interest paid on the EMI u/s 24 until the construction is completed. The bank will give you a certificate stating the pre-construction interest. this can be claimed beginning with the year in which you have obtained possession and over the next 4 succeeding years in equal installments. In my view, you can in any case not claim both HRA and House Property Loss for Self Occupied Property unless you cannot actually occupy the house since employment business etc is carried on at any other place and you canot live in that SOP.
07 January 2013
Thank You, One more clarification- Then till the completion of house construction can I claim the HRA exemption? and Can I claim principle portion now only under 80C?
07 January 2013
There is no such restriction for claiming deduction of Principal under Section 80C even when the property is not completely constructed.
07 January 2013
in one case you can claim HRA exemption and interest u/s 24 when you are living in separate city and house is in separate city. then you can claim interest u/s 24 and HRA exemption both if you are paying rent
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