HOUSING 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

Housing loan interest deductions and HRA eligibility after purchase: reconciling rent allowance with home loan benefits. The employee seeks clarification on HRA entitlement for rent paid until possession after obtaining a housing loan, and on income-tax deductions for housing loan interest, principal repayment and renovation loan interest where the house is purchased in joint names and possession follows bank financing.