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Hra & interest u/s 24

sunil (sd) (78 Points)

11 June 2012

Dear All,

Pls advice me that can I take tax benefit for HRA and interest paid for loan for house purchase under section 24

Regards

Sunil

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6 Replies

Supriyo Banerjee (Executive Finance) (181 Points)
Replied 11 June 2012

yes absolutely if it due or paid

2 Like

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Varuna (CA Student) (102 Points)
Replied 11 June 2012

You can take interest as a deduction u/s 24.. But HRA will be taxable.

bhavani (article assistant) (49 Points)
Replied 12 June 2012

You can claim both the deductions provided that your rented house and construction house are not in same area.

Nihal Hisariya (TRAINING) (88 Points)
Replied 12 June 2012

you can claim deduction u\s 24 but construction should be completed within 3 years from the end of the financial year in which capital was borrowed Rule given below :- Interest on borrowed capital is deductible as follows: 1. If the following conditions are satisfied, interest on borrowed capital is deductible up to Rs 150,000. Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property. The acquisition/construction should be completed within 3 years from the end of the financial year in which capital was borrowed. The person, extending the loan, certifies that such interest is payable in respect of the amount advanced for acquisition or construction of the house or as refinance of the principle amount outstanding under an earlier loan taken for such acquisition or construction. 2. If the conditions stated above are not satisfied, then the interest on borrowed capital is deductible up to Rs 30,000. However, the following conditions have to be fulfilled: Capital is borrowed before April 1, 1999 for purchase, construction, reconstruction repairs or renewal of a house property. Capital should be borrowed on or after April 1, 1999 for reconstruction, repairs or renewals of a house property. If the capital is borrowed on or after April 1, 1999, but construction is not completed within 3 years from the end of the year, in which capital is borrowed.

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 12 June 2012

Yes, no problem with that. You can take both the privileges

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bhavani (article assistant) (49 Points)
Replied 09 July 2012

U Can claim for both only if your constructed house is atleast 50km away from your rented house . U Can claim HRA exemption though you are living in your parents house, this can be done by entering into an agreement with your parents provided that house is registered in your parents name. Why Because if your parents are having only this rented income they will fall below the slab any way.