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Home loan interest declaration

Shubhra (IT Professional) (44 Points)

16 July 2014

Hi,

I am e-filing ITR for financial year 2014-2015. While going through https://incometaxindiaefiling.gov.in/e-Filing/ and then Quick e file , I am not able to understand where to enter Home Loan Interest amount. Can I mention negative value in "Income from One House property" (ex: -120000) in Income Details tab ?

Regards,

Shubhra

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11 Replies

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 16 July 2014

yes, that is the only way to claim deduction of housing loan intt..... and a little correction in you ques., return is being filed for assessment year 2014-15 financial year 2013-14

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Shubhra (IT Professional) (44 Points)
Replied 17 July 2014

Hi,

Thanks for your reply. 1 more clarification. At the time of declaration, I declared for Home Loan Principan and interest both but the registration is not yet done. Can I claim Principal and Interest in my case?

Thanks,

Shubhra

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 17 July 2014

yes you can still claim deduction....

Abhijit (Business Development Manager) (32 Points)
Replied 17 July 2014

Hi,

I have purchased home in Aug 2013 and still not got possession of the home.

My finance company started deducing Principal and Interest on the amount paid to builder.

Can I get benefit of the same.

Also can it be clubbsed with HRA claim as I am still living at rented home.

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 17 July 2014

@ abhijit... yes you can claim deduction of both interest and principal as well as hra in your return. interest and principal can be claimed only if it has been actually paid during the year.

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Shubhra (IT Professional) (44 Points)
Replied 18 July 2014

@ tribhuvan...The below websites show that

1.) If the construction of the property is not complete by March 31 of the financial year, then no benefit is available for that financial year.So if the construction is completing in Dec'14, the claim for Interest paid before march' 2014 can't be done now.

2.) Pre-Construction tax benefit for home loans starts after construction. It can be claimed in 5 installments in 5 years, i.e. one each in an year.

Please explain this contradiction. I am not able to post the websites here. Please check in the emails which we receive from caclubindia in our emailbox.

Thanks,

Shubhra

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 18 July 2014

@ shubhra.. these provisions are correct and i remember these provisions... i didnt say anything about these provisions because neither you nor abhijit said anything about completion of house.. you query was whether you could claim it or not, then how could i understand about completion of house.

Shubhra (IT Professional) (44 Points)
Replied 18 July 2014

@ Tribhuvan,Sorry for not provideing all the details.

My situation is similar to Abhijit. I applied for Home Loans in Aug 2013 and the possession is in dec 2014. At the time of declaration, I got provisional statement from the Bank with Principle and Interest till March 2014.I showed that along with rent receipts to the Accounts deptt in the company. They accepted it and generated Form 16 with all these details. And as a result, I should receive refund of 9k from Income Tax Department. But while filing ITR, I came to know what I am doing is wrong and I should not have entered details of Principle and Interest as the apartment is not yet completed.And I should pay around 7k as IT.

I contacted the ITR filing agency (outsourced in the company), they suggested me to fill as it is in Form 16 and its not my headache but the company headache that they accepted my details.Even they said that Pre Completion Interest and Principle are accepted nowadays.

But while browsing,all the websites are giving different suggestions.

Please provide me an expert advice.

Thanks,

Shubhra

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 18 July 2014

okk... if you follow the act, then you are not eligible for deduction now and can claim deduction according to provisions only after completion of house... but yes, many dont follow the provisions and claim deduction of intt. in itr in the year it is paid irrespective of the fact that it is pre or post construction. i.t.dept. also allows that deduction because they are helpless and do not have the reqd manpower or infrastructure to verify the truth of pre or post construction intt. in case of each assessee..... so in your case, i would suggest that if housing loan intt has been claimed in your form 16 then claim it in your itr also, there is no problem with that.