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

Employee Queries on HRA, Home Loan Interest, and Renovation Loan Eligibility for Tax Benefits 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 renovation, the employee took possession of the house jointly with their spouse. The queries are: 1) eligibility to claim rent paid until October 2014, 2) eligibility to claim 50% of interest paid on the building loan up to 2 lakhs, 3) eligibility to claim principal payment of the building loan up to 1.5 lakhs (50%), and 4) eligibility to claim renovation loan interest up to 30,000 (50%). Expert opinions are sought.