View Full Version : Income tax rebate on HBA

04-10-2011, 01:12 AM
Dear Seniors,

I took Rs 24 lakh housing loan from LIC in August 2011. I was in rent house till August 31, 2011 and paid rent. In September 2011, I shifted to my new house. In 2nd week of September 2011, I paid about Rs. 15000/- as interest and no principal. From October 2011 onwards I have to pay about Rs 24000 as EMI (about Rs. 21000/- as interest and about Rs 3000/- as principal) on 7th of every month. Please suggest me, how to get tax benefit for rent paid from April to August 2011 and my repayment to LIC housing finance from September 2011 to March 2012 both.

With Regards
BMK Raju

04-10-2011, 06:59 AM
Tax benefit for rent paid (April to August 2011)is the least of the following.
i) HRA received for the period
ii) Rent Paid in excess of 10% salary for the period
iii) 40% of salary(50% in cases where accommodation is in Bombay,Calcutta, Delhi or Madras)for the period

From September to March you can claim reduction of the interest paid for the housing loan under loss on house property. Deduction on Principal can be claimed under Chapter VI A.