I am a salaried person (with HRA allowance) and staying in a rented house and submitting the rent receipts to the company and get the tax exemption for the same. Now I have taken a Home loan for under construction flat, which I am going to get the possession in Dec.2008. I have started paying EMI from Jan.2008 for the same. I am working and staying in rented house in Pune and my new flat which I am going to get possession is in same city.
1)If I rent a new flat after possession, can I continue claiming HRA exemption if I continue staying in rented house? And same time can I get the benefit of housing loan i.e. loan repayment and interest paid? 2)If I get a possession of new flat in Dec.2008, can I claim a exemption on EMI(principle and interest) from financial year April 2008 to March 2009 and onwards? 3) What about first three EMI from Jan.2008 to March 2008, how Principle amount and Interest will be adjusted in following years for tax exemption? 4) If I am not allowed to claim a HRA exemption after I get possession of my new flat, say in month of Dec.2008, because I live in same city, can I claim the exemption onHRA till Nov.2008? And claim exemption on EMI (principle and Interest of home loan) for entire financial year 08-09?
I have consulted above queries with few Tax consultants but unfortunately got different answers from them. I hope you and sure that you will be able to give me correct answer.
