HOUSE RENT AND BUILDING LOAN INT

[S.C. WADHWA]

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

AI Summary

Employee Queries HRA Eligibility, Loan Interest Deductions Under Income Tax Rules for New Home Purchase and Renovations An employee received house rent allowance (HRA) and paid rent until October 2014. In November, after securing a bank loan of 42 lakhs for a new house and 10 lakhs for renovations, the employee took possession of the house, jointly owned with their spouse. The queries raised include eligibility for claiming rent paid until October 2014, claiming 50% of interest paid on the building loan up to 2 lakhs, principal payment of the building loan up to 1.5 lakhs (50%), and entitlement to renovation loan interest up to 30,000 (50%). The response indicates the query was previously addressed.