Income from house property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2014 I have purchased house in the month feb 2014 by availing a loan from bank. I am drawing salary of Rs, 12 lakh and paying house rent of 20000/- and paid towards interest on housing loan Rs. 501201. The house is vacant as on today now my question is whether I can claim HRA and claim full housing loan interest by showing rent of rs 30000 for two months since i got occupancy certificate in Feb 2014. waiting for advise from panel of experts

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 July 2014 1. You can avail HRA exemption as well as deduction for interest on housing loan if you show rental income.

2. You can also claim both HRA & deduction for interest on housing loan if owned house is situated in a different city that the city in which you are working. In this case you will claim your house as self occupied (occupied by family). You DO NOT need to show any rental income.

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2014 Sir, Thanks for prompt reply but my question is my flat and where i stay are in the same area that is close to my employment palace, further if i show my house as self occupied i will be eligible for interest on housing loan to the extent Rs. 150000 hence i want to show my vacant flat as deemed let out by showing two months rent since i got occupancy certificate in feb 2014 and claim full interest ie 501201 & HRA DEDUCTION. awaiting for ur reply. Thanks in advance

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 July 2014 In that case point 1 of my reply will be applicable and you can claim HRA exemption for 10 months & FULL housing loan interest.

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2014 Sir, Thanks again but why HRA exemption for 10 months only instead of twelve, I have also shown my flat as let out for two months as i got occupancy certificate in feb 2014 hence i think if the property is let out one can claim total interest on housing loan without any limit. please awaiting for your early reply. One again thanks for prompt reply.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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09 August 2014 1. If you have shown as let out, then you can claim HRA exemption for full 12 months.

2. Further you can avail deduction of interest on loan without any limit.

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2014 Thank you for your reply sir