Dear Experts,
One of our employee getting hra and have paid rent till oct.14. in nov after getting bank loan 42 lacs for new house and 10 lac for renovation, get possession of house in joint name with spouse. Now my query is 1) whether he is eligible for rent paid claim till oct.14. (2) 50% of int paid on building loan upto 2 lacs. (3) Principle payment of building loan upto 1.50 lac ( 50%) (4) Whether is also entitle of renovation loan int upto 30000/- (50%). Please give your expert opinion.
Regards,
WADHWA
House rent allowance eligibility when employee acquires a jointly owned house loan; queries on rent, interest and principal deductions. Employee received HRA and paid rent until taking possession of a jointly owned new house after obtaining housing and renovation loans. Questions arise on entitlement to HRA for rent paid prior to possession, and on tax relief for: a portion of housing-loan interest within the stated ceiling; principal repayment of the building loan within the specified limit; and interest on the renovation loan within its indicated cap, taking joint ownership into account. (AI Summary)
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