HOUSE RENT AND BUILDING LOAN INTEREST

[S.C. WADHWA]

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 Tax Benefits on HRA, Loan Interest, and Principal Payments for Jointly Owned House An employee received a 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 owned with their spouse. The query seeks clarification on eligibility for rent claims until October 2014, tax benefits on 50% of interest paid on the building loan up to 2 lakhs, principal payment up to 1.5 lakhs (50%), and interest on the renovation loan up to 30,000 (50%). The response requests further details for clarification.