Query on Income Tax Exemption on Housing Loan Interest

Hi

I purchased an under construction apartment in Bangalore in 2014, which got completed in March 2016. The registration of the property has also been done in March and am currently living in that flat.

Till registration I had been paying pre-emi on the associated home loan and currently paying regular EMI. 

I was staying in a rented apartment for the financial year 2015-16 and have claimed tax exemption for the same. This is reflected in the Form 16 issued to me by my employer. Now my queries are

i) Since the registration was done in March 2016, can I also claim exemption for the housing loan interest for the financial year 2015-16? 
ii) If I can claim exemption on either the housing loan interest or rent, then is it possible to claim on loan interest instead of rent during filing IT return? Please note my form 16 reflect the claim on rent.
Asked 5 months ago in Income Tax from Bangalore, Karnataka
Dear Sir,

1. Yes, you can claim deduction for housing loan interest. You can claim 1/5 of pre-construction interest in FY 2015-16 without any upper cap considering the same as deemed let out.

2. You can claim  both HRA and interest on housing loan.

Please feel free to call/revert in case of any doubts 

Thanks and Regards
Abhishek Dugar
CA, CS, B.Com
Caabhishekdugar@gmail.com

Abhishek Dugar
CA, Mumbai
766 Answers
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Yes you can claim Housing loan interest.

In that year you can claim both HRA and interest. No Problem.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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