Vat on flat purchased in under construction

Sir,

The  VAT liability of the Builder is on the basis of receipt.So you are liable to pay 5% VAT for the payments made between 2006 and 2008.

Thanks&Regards

Narayaan.P.Potty

Advocate

I have bought one underconstruction flat in Mumbai but now due to my job change, I had to relocate to Delhi where I am staying on rent. Since, My property is in mumbai and not yet get the possession but I am paying interest (EMI). Please suggest can I get a tax benefit of both on EMI & HRA (in Delhi)?

Sir,

You will get income Tax benefit for both EMI  of Housing Loan and HRA of Salary.

Regards

Narayanan.P.Potty

Advocate

thank you Mr. Narayanan, This has helped me a lot. Can you please share the link or section no where is was clearly mentione. Acutally, My company says that i can only get EMI benefit, if my flat is ready for possession. I will show that proof to them.

I want to speak with you . can you please give me your numbar.

Sir,

In your quary it is written that your flat is under construction.

As per Section 10(13A) and Rule 2A you are eligible to claim least of the following House rent.

1)Actulal HRA received.

2)Rent paid in excess of 10% of Salary.

3)50% of the Salary..

Income Tax benifit for interest on Housing Loan will not affect the HRA benefit.

After  getting the completion certificate and taking the possesion of Flat  you can not claim HRA benefit.

Regards

Narayanan.P.Potty

Advocate

Thank you so much sir.

But my query for claiming both the benefits ( i.e. interest paid for under construction flat in Mumbai and house rent paid in Delhi) is remain in doubt.

In your first reply, you said, I can claim tax exemption for both i.e. interest paid for under construction flat which is in Mumbai & rent paid at Delhi.

So I need an authentic article & section number which I can show to my employer & prove that I can claim tax exemption in both interest & HRA…( in section 10(13A) rule 2 explain about HRA only. section 10(13A) rule 2  doesn’t say that I can claim tax exemption on interest paid for under construction flat)

I will be great help to me to prove my point & your suggestion.

NOTE: I stay have relocated in Delhi while I had booked under construction flat in Mumbai which is still constructed by builder.

 Warm Regards

Rajesh Sharma

sir please reply. your earlier answers have given me a best hope.

Sir,

It is 100% sure that you will get  HRA benefit for rent payment and Income tax benefit under section 24(b) for interest portion of EMI for Housing loan repayment.The only thing is that you have to produce Rent agreement or Payment receipt and Certificate issued by the Housing Loan company..

Regards

Narayanan.P.Potty

Advocate

Thanks sir, I will show this to my a/c department. Thank you so much.