Hi,
My friend working in MNC and getting HRA & During financial year Oct 08 he started construction of House property by taking bank loan.
My question is whether he can claim HRA & loan payment(Interest & Principle)
6 Replies
Abhinav Agarwal
(M.Com C.A SAP Consultant)
(814 Points)
Replied 26 February 2009
You can claim HRA. House Loan will hv 2 treatments:
1. Interest will be allowed for pre construction period in 5 equal installment after it is constructed.
2. Principal re-payment can be claimed u/s 80C
C.A. M.Com. Suhas A. Nagpure
(CA)
(1175 Points)
Replied 26 February 2009
| Originally posted by :Ramshankar | ||
| " | My question is whether he can claim HRA & loan payment(Interest & Principle) | |
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 27 February 2009
Ram Shankar
Yes dear u can claim both. I think you have written that he has started construction from oct-08. Upto period when the house construction is completed , you claim HRA .Scenerio is changed when house is completed. If you construct the house in same city where you reside on rent , then only you claim either of the deduction.
For any clarification mail me on sorabh.gupta @ ambujacement.com
Regards
CA. Sorabh Gupta
Deepak Jha
(Student)
(39 Points)
Replied 28 February 2009
Dear Ramashankar,
I m fully satisfied with the Sorabh's answer. Your freind can claim interst as a deduction only on the completion of construction as preconstruction interest, over the period of five years.
So now your freind can claim only HRA,
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