I am staying in a government quarter, therefore I am not getting HRA. How far away from the government quarter I have to buy the house and give it on rent and also get tax benefits by staying in government quarter?
I am having a flat in B'lore as a joint applicant with my wife. I am staying in Chennai. My I have rented out my flat at B'lore. What tax benefits I will get. And second thing I taken the home loan. Want to know that whether principal amount of the home loan will be covered in 1 lakh investment slab or not.
Re: Staying at different place
by Amol Prabhawalkar on Nov 08, 2011 03:56 PM
Are u staying in Chennai for work related issues and is ur wife in chennai or banglore?
Re: Re: Staying at different place
by Amol Prabhawalkar on Nov 08, 2011 03:58 PM
and whether ur current house in chennai is rented or owned . please clarify
Hi! As per my knowledge rent to spouse is not eligible for deduction as per HRA rule. Also if you or your spouse is having a flat in his or her name than also such benefit are denied to you even if you rented out the property and stay in a rented house.
Re: Rent to Spouse
by Amol Prabhawalkar on Nov 08, 2011 03:32 PM
Yes Sir, very correct. Not only spouse but rent given to close relative also is under dispute and can not be claimed as deduction in Incometax rebate
Re: Re: Rent to Spouse
by Sunil Rathi on Nov 08, 2011 04:22 PM
Sorry Sir, but I didn't agree with you. As per Supreme court case law if rented paid out to parent is allowed as deductible.
Re: Re: Re: Rent to Spouse
by Amol Prabhawalkar on Nov 08, 2011 05:14 PM
its disputed actually. and depends on merit of case. For eg a child living for 25 years with a father lives without rent and suddenly he gets a job and just to claim incometax rebate he starts showing rent to his father . too supicious. and hence the case will be decided on merits not merely because rent is paid to father
Re: Re: Re: Re: Rent to Spouse
by Aditya Deshpande on Nov 13, 2011 07:16 AM
Well - look at it this way. Once he gets a job, why should he not pay rent to his father? If he was staying in a paying guest arrangement would he have not paid? Can be argued easily.
Re: Re: Re: Re: Re: Rent to Spouse
by Amol Prabhawalkar on Nov 14, 2011 09:06 PM
Are u related to taxation field bro. ? I am. I only later found out that the author of this article is a computer software field trying to advise on matter related to taxation.
Hi,Could you please let me know the best thing to do with respect to tax saving out of the below options. Also tell me the maximum tax that can be saved. Thanks. 1) Buying a house in the same city and staying in it. 2) Buying a house in the same city, give it for rent and staying in an rented house 3) Buying a house in different city and staying in an rented house
Re: Tax saving on home loan
by Amol Prabhawalkar on Nov 08, 2011 03:16 PM
If Buying a house is so simple , i wud suggest you to get a personalised appointmment with a tax advisor in your area , he may suggest you some more better options for tax savings . sory for being blunt
Dear Sir, I have taken home loan for the under construction house in noida. The possession of the house will be in Apr 2013. Meanwhile I am paying EMI on my home loan including principal amt and interest. Please explain when and how can I get tax exemption on interest being paid now since the possession of house will be in 20134. Thanx in adv
Re: Exemption on home loan interest.
by Anil Gupta on Nov 08, 2011 02:03 PM
If the possession is in Apr 2013, you cannot get any exemption for the amount paid before it. Try to get the possssion in Mar 2013 and you will be eligible for tax exemption on the interest and principal amount paid in year 2012.
Re: Re: Exemption on home loan interest.
by Amol Prabhawalkar on Nov 08, 2011 02:42 PM
even after possession in March 2012 he will not get any benefit for emi paid in 2012. he can take benefit of emis paid what he pays only after taking possession of house
Re: Re: Re: Exemption on home loan interest.
by Aditya Deshpande on Nov 13, 2011 07:26 AM
Amol - what you are saying is incorrect. Mohan can do 2 things. If he is staying outside NCR, he can claim the principal under section 80C. Also the pre-EMI he is paying can be carry forwarded and deducted in 5 equal yearly installments from the year of possession.
Dear Sir, I have taken home loan for the under construction house in noida. The possession of the house will be in Apr 2013. Meanwhile I am paying EMI on my home loan including principal amt and interest. Please explain when anw can I get tax exemption on interest being paid now since the possession of house will be in 20134. Thanx in adv
Re: Exemption on home loan interests
by Amol Prabhawalkar on Nov 08, 2011 01:17 PM
As per current IT Laws , You can take benefit of EMI paid only after u take possession of your house . however current emis paid can be claimed in 5 years .
SENTHIL NATHAN Re: HRA Home loan by SENTHIL NATHAN (View MyPage) on Nov 08, 2011 12:23 PM When the house is under construction u will pay only the pre EMI (only interest) and not the regular EMI. Pre EMI cannot be claimed for tax exemption. As and when your regular EMI start ie the completion of the house. You can claim Home loan for tax exemption or you can let out the house and stay in rented house & eventually claim both. The amount paid as Pre-EMI can be then divided onto 5 years and claimed from the start of the regular EMI. Hope you got the point.
