Hra vs loan & interest benifit on housing loan

This query is : Resolved

Kamal Bisht (Querist)
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11 March 2013 Dear all,
If a person is paying rent during the f.y. and he has owned a house(only land) for which he is doing construction for house property, can he take dual benifit of HRA exemption u/s 10AAA and other benifit of repyament of housing loan and interest thereon.
What is this called, let out property or self occupied propertu?

CA Neha Chauhan

CA Neha Chauhan (Expert)
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11 March 2013 Yes he can take the both the benefits and the under construction house treated as self occupied property.

Regards,
Neha Chauhan

Santosh Mishra

Santosh Mishra (Expert)
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11 March 2013 Benefits for housing loan repayment can only be taken from the year in which construction has been completed.

In your case property is still under construction and you can avail loan benefits if construction is completed before 31st March 2013.

Of course interest benefit for pre-construction period is available in five equal installments from the year of completion.

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