Income tax against home loan

This query is : Open

Naresh Singrakhia (Querist)
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15 May 2016 Hello Sir,
I have taken a home loan of 30 lakh from Hdfc bank in April 2016.
The property is under construction and the possession will be given by the builder in March 2017.
The first disbursement of Rs. 1820625 was dome to the builder in April and I have started paying the EMI of Rs. 19012.
The disbursements of balance loan amount will be done quaterly starting from July 2017.

Currently I am staying in rent of Rs. 8000 per month.

Can I declare both, the rent and home loan EMI interest in the investment declaration for FY 2016-17 and take the tax benefit?
Or is it that I can only claim the home loan benefit after getting the possession?
Please advice as I have already started paying home loan EMIs.
Our finance is saying that I can take the home loan benefit after taking the possession only.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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16 May 2016 the interest paid upto posseion of house in allowed as deduction if five equal annual instalments after posssion is taken
CA MANOJ GUPTA
JODHPUR
9828510543

Naresh Singrakhia

Naresh Singrakhia (Querist)
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16 May 2016 Thanks Manoj Ji

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CA SUDIPTA SINHA

CA SUDIPTA SINHA (Expert)
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16 May 2016 Yes. You can take the benefit of interest paid on loan and also the principal amount only after the construction is completed and completion certificate is obtained. However, the interest paid for the pre construction period shall be deductible in 5 equal installments commencing from the year in which the construction is completed. At present you can take the benefit of the rent paid u/s 80GG if not in receipt of HRA.

Naresh Singrakhia

Naresh Singrakhia (Querist)
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16 May 2016 Thanks Sudipta ji