Q:I have taken a home loan and want to take advantage of tax benefits from it. Can I also claim for House Rent Allowance from my workplace? Please advice.
Latest Answer: If you are staying at a rented place and have taken a home loan then you have the tax benefits on principal repayment, interest payment and HRA benefit. You can claim tax benefits if the construction of your property is over. Once the construction is done, you can not claim the HRA benefits. If you took a home loan, got possession of the house, have rented it out and stay in a rented accommodation, you will be entitled to all the three benefits.
Latest Answer: Hi David..The tax benefits are seperately available for the interest component as well as principal component of the housing loans consumers. It is available for both consumers who have taken a loan to either buy or build a house. According to Income Tax Act, the upper limit of the interest payment deduction is at Rs. 1, 50,000 per annum. The amount should have been borrowed on or after April 1, 1999 to acquire or construct a residential property and it the acquisition or construction should be done within 3 years. The section 80C also allows tax benefits on principal repayments.
