Query Regarding Home Loan Declaration

POSTED BY sorabhk5 ON May 2, 2012 12:54 pm COMMENTS (5)

Apologies if this is the repeat question.

I am about to declare investments for 2012-2013.
But have a confusion regarding declaration amount in HRA & Home loan

Purchased a new house in Feb 2012 [no declaration/mention in last year ] to be self-occupied.
Home loan EMI started from April 2012.
Presently I am staying in a rented accommodation (close to the new house) & expected possession of new house is in next 2 months. [June-July 2012]

Even if I consider all unforeseen delays , I am sure i will move in to the new house by Oct-Nov 2012 .

Now the confusion
— I understand 1 lakh towards principal payment can be declared under 80 C.
— Also I am eligible for 1.5L deduction towards interest payment under section 24b for self occupied property

But can I declare all of these:
1. HRA — for months I am staying on rent in this financial year &
2. Home Loan Interest payment — upto 1.5 lac in this year ( considering I am able to show the occupation certificate by the last quarter when investment documents needs to be submitted)
3. Home Loan Principal payment under 80C – [ i am sure about this one]

Basically (in my case) – can I declare both HRA & interest part in my investment declaration?

Thanks in advance

5 replies on this article “Query Regarding Home Loan Declaration”

  1. BanyanFA says:

    Hi Sorabh,
    As I understand, you can claim HRA, interest deduction and Principal payment all together.

    If your property is completely built up and is ready for possession, then you would be liable for notional rental income, despite of the property being vacant.


    1. sorabhk5 says:

      Thanks for the reply.
      National Rental Income….?
      As I understand National rental income is applicable only when I have a ready possession flat but I continue to live on rent because of xyz reason. e.g: distance, city etc
      (property is ready possession & but I continue to live on rent.)

      Not in case
      When I move-in to my property after possession.
      e.g: Possession in August-12 & I move-in from Sep 2012

      & Stop HRA claim from the month I get possession. i.e: Aug-12.
      Claim HRA upto July-12 only.

      1. Dear Sorabh, as of now possession of the property is not with you so you are not eligible to claim that 1.5L Rs. interest benefit. Yes once the possession is with you, you can claim the same.

        So as of now you can claim only HRA & principal repayment benefit.



  2. sorabhk5 says:

    Thanks Manish.
    Yes, in declaration – loss from house property self occupied can be shown in advance.

  3. 1. Yes you should be able to show both the things .. HRA for the time you are going to live on rent and Principle part which you will pay in the year

    2. Not sure why your company is asking for interest part in your declaration (I am not sure if they do) . But you can show this also

    3. Already said yes in point 1

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