Can i take income tax benfit for home loan amount & rent
pravin
(Querist) 30 October 2012
This query is : Resolved
Dear Sir,
I had purchased the new under construction flat on Loan, currently i am leaving in rented flat and paid the rent also i am monthly paid the EMI against the loan. I will get the possession in Jan-Feb 2013. So can i take both amounts for income tax exemption under 80 C.
ajay sethi
(Expert) 30 October 2012
Maximum tax deduction for repayment principal component of home loan can't exceed Rs 1,00,000 under section 80C.
Housing loan interest deduction, on the other hand, is allowed up to a maximum amount of Rs 1,50,000 under section 24(b). However, the acquisition or construction of the house property should be completed within 3 years from the end of financial year in which home loan was taken; otherwise, the amount of interest benefit allowed is only up to Rs 30,000.
pravin
(Querist) 01 November 2012
Thanks for reply,
As i understand that the limit of loan principle & interest for tax deduction, but not resolved my query. I had taken the loan on mar 2012 an i will get the possession in Jan-Feb 2013. so for year 2012-13 Can i take the both Loan & Rent amount tax benefit at a time.
R.V.RAO
(Expert) 15 March 2014
if HRA is part of your salary structure and if you are paying rent,and if your new property purchased is located at a different place from your job location,you can claim rent deduction.
as for home loan int. there are 2 components.till say 2013 january (when you took possession of the house) whatever int. you paid to home loan lender is preconstruction int.which you claim in 5 equal instalments commencing from the year when you took possession from builder on completion.
from say feb 2013 your regular emi starts where emi consists of principal and int.both.
the int,portion of emi you claim deduction,under sec 24 (b) and principal loan portion of emi you claim ded.under 80 c.
the home loan lender will give you the letter showing detailed split up of pre-emi int.,regular home loan int. and principal portion of home loan paid etc...
the lender may ask you to produce builder's completion cert.(as per regulatory requirements) before he changes the home loan int. character in his books as pre emi and regular emi. int.
