I know this question has been asked many times earlier but the answers are too technical for me to understand. Request your guidance (at dummy level).

I am living in a rented house. This year (F.Y. 2014-15) I have booked an apartment in the same city for which i will get the possession on Feb or March 2015. I have opted for Directly-EMI (no pre EMI) and I am paying the EMI since August 2014.

Now for my case there are 3 components which can be claimed under various scenarios. 1) HRA. 2) Principle repayment done during the year. 3) Interest repayment done during the year.

Could you please help me in understanding on what I can claim out of 3 mentioned above and under what section (I am not in possession of my apartment as it is still under construction)

Also, If possible, what all documents I need to claim the tax exceptions under the 3 categories mentioned.

Thanks in advance

  • 2
    How can you ask a tax question and not even hint about what country you're at? – littleadv Dec 30 '14 at 9:54
  • apologies. the question is for INDIA taxation – Mohit Dhir Dec 31 '14 at 2:34
  • Under section 24 of the Income Tax Act, you can claim upto 1.5 Lakhs and up to Rs 1 lakh under section 80EE of the home-loan as non taxable expenditure. The principle amount during the first year will be negligible but it is wholly taxable as expenditure. – letterhead Dec 31 '14 at 13:04

You can claim all the 3 components:

HRA under section 10(13A), you need to have the rent receipt for the period you have been in the rented house.

Principal repayment claimed under section 80C up to 1.5L, you need a provisional certificate from the home loan provider to claim along with Possession Letter.

Interest repayment claimed under section 24C up to 2L, you need a provisional certificate from the home loan provider to claim to claim along with Possession Letter.

The Principal and Interest repayment can only be claimed if you actually take possession of the house before 31-Mar-2014.

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