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

AI Summary

Claiming Tax Benefits on Home Loan Interest for Under-Construction Property: Can You Also Claim HRA for 2014-15? An individual sought advice on claiming tax benefits for a housing loan interest related to an under-construction property purchased in July 2012. They anticipated possession by February 2015 and planned to reside there by May 2015. They inquired about claiming the interest as a 'loss of house property let out' while also claiming House Rent Allowance (HRA) for the entire fiscal year 2014-15. A respondent asked if the issue was clarified and confirmed that interest on the housing loan could be claimed for tax benefits.