Dear Sir/Madam, My question is pertaining to Home loan interest declaration as it is the beginning of the financial year. I have taken a home loan of Rs 54,00,000 Lakhs in the previous financial year 2016-17. My background I am a working professional I have the following questions regarding the same 1. Am I eligible for claiming Home loan Interest and Principal deduction If Yes 2.Under what circumstances I can declare both HRA and Housing Loan as my house is still under construction and it will take another 4 months for the construction to complete and take possession of the newly constructed house. 3.How much Interest can I declare for the current financial year 2017-18 as I believe the home loan is over the Rs.40,00,000 Lakh limit If no 4.How can I claim deduction on the same. Sincerely, S P Kumar
Dear Sir,
1) Yes you can claim housing loan interest under house property income and repayment of housing loan under section 80C
2) Yes till the time your house in under construction you can claim both HRA & Housing loan interest.
3) Sir it depends upon rate of interest and you must have received loan repayment chart based on that you can derive that amount
4) Not Applicable
Dear SP Kumar,
1. Yes, you are eligible for claiming home loan interest and principal dedcution
2. You can claim HRA and interest payment both if you are living in a rented house due to proximity of your house etc. and owned house is either vacant or given on rent.
3. If the house is self occupied, you can claim Interest deduction UpTo 2 lacs in year and if the house is let out there is no limit on interest deduction but maximum loss in house property is restricted to 2 lacs.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Hi
Once you get possession of the house, you can start claiming the deduction for payment of interest and principal amount of loan. Until then, you can claim HRA.
The bank which had given the loan, will issue a certificate stating the amounts paid by you towards interest and principal. Based on this certificate, you can claim a deduction. Interest can be claimed upto Rs. 2 lakhs. Principal can be claimed upto Rs. 1.50 lakhs under Chapter VI-A (along with your insurance policy, etc.)
There is no such limit for claiming deduction if the amount of housing loan of Rs. 40 lakhs.
Regards
Keerthiga Padmanabhan
M.Com., CA, LLB
Thank you all for your answer. The loan was sanctioned in FY 2016-17 however I had not declared the same in the FY2016-17 but I have paid interest as part of Home loan interest payment and I am declaring IT deductions from current FY 2017-18. My question is how do I claim IT deduction for the interest payment made for the previous financial year 2016-17?
1. Sir you cannot claim interest on Home loan till the same is under construction. You can claim the interest 1/5 every year from the year of completion every year as pre construction interest.
2. Till the time the house is not completed you cannot claim interest as well as principle.
You can claim the same while filing IT Return
You can claim the same while filing ITR for FY 2016-17
Please feel free to revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
Hi,
You can claim the same while filing IT Returns for FY 2016-17.
You can claim a deduction of the interest (paid prior to the possession of the property) after you get the possession of the property. You can claim it as pre-constructed interest.
Trust this suffice.
Regards
Keerthiga Padmanabhan
Hello Sir,
You can claim interest benefit only after the construction is fully completed and not any time before that. So in that scenario you cannot claim benefit for interest paid while filing returns for the F.Y. 2016-17 but you can carry it forward and claim it in 5 equal installments when your property is fully constructed.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
