Housing loan interest

[Guest]

Hi all,

Looking for some information on my tax scenario.

I bought an under construction property in July 2012. The construction is almost complete and I expect to get possession in February 2015(before March 31, 2015). So I believe for FY14-15, I can claim tax benefits on the bank loan interest I have been paying since 2012, even though I will start living in my flat only by May 2015(interiors etc need to be completed)

I am also claiming HRA benefits for the full year FY14-15(until March), since I am staying for rent in the same city.

In this scenario, whats the best way to claim my interest benefits? If I claim it as 'loss of house property let out', can I claim the entire interest amount and just add notional rental income for March 2015 to my total income? How will this combine with the HRA claim for the full year? Thanks in advance for your insights!

Raj

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? You can claim interest on housing loan for the tax benefits.

AI Summary

Housing loan interest claimable for tax benefits when possession occurs before fiscal year end; HRA interaction requires consideration. The taxpayer purchased an under construction property and, having paid housing loan interest since purchase with possession expected before the fiscal year end, sought to claim those interest payments as tax benefits while also receiving HRA. The adviser's operative response confirmed that the taxpayer may claim interest on the housing loan for tax purposes, but gave no detailed guidance on treating the property as deemed let out or on reconciliation with the HRA claim.