EMI paid on the home loan

How can I avail IT exemption on HRA & EMI paid on the home loan taken for a under construction house?

I am paying EMI of my home loan. The House is still under construction since last two years. So how can I avail IT exemption on HRA and EMI paid since last two year?

I am not sure how you are paying EMI for a house under construction. Normally a person pays pre-EMI when the house is under construction. EMI starts only after complete disbursement of loan. IT exemption can be availed only after taking possession of the house. Pre-EMI can be claimed in 5 equal installment for 5 years. You can claim HRA if you fulfill these three conditions: - You have an HRA allowance as part of your salary package. - You are staying in a rented accommodation and paying rent for it. - The rent exceeds 10% of your salary.

Hi, when a home loan is taken, is the monthly EMI deductible from the gross income for Income tax benefits ?

I have few more doubts: In case of the whole EMI deduction allowed or not, is there any specific limits for the declaration of Principal and/or Interest amount paid per annum ? Is the HRA claim possible even when the home loan EMI declaration is done ? For an annual gross of 14.5 lakhs with NO salary breakup and 31k home loan EMI { 18.5k HRA claimed,now in rental, new home pjt yet to finish } , how to reduce the 30k Income Tax paid ? Can anyone suggest ? I am in great confusion 'coz i heard the interest part of the EMI cant be deducted for IT purposes. Is it so ? Please help... Also, i heard, there is a possibility to reduce Income Tax by gifting 1 to 2 lakhs to one's each parent. Is that true ? In that case, is the gift to be made as a notary settlement or agreement etc? will there be any charges paid for that like service tax etc... Does that gifted amount itself will be tax-exempted ? [ deducted from one's gross income when income tax is calculated ] OR the income from investments made out of THAT gifted amount will alone be Tax-exempted ?

Yes you can claim loan deduction as well as HRA if and only if you have taken another house on rent due to your place of work. Means you are not able to live in your own home because you have to work far away and it it not possible to come and go on daily basis. You are eligible for duduction of maximum Rs. 100,000 (principal repayment) under section 80 C. You are also eligible for deduction of maximum Rs. 150,000 on interest paid during the year. The gift part is not allowed as deduction for you. You can gift to your parents for any amount and that will not be taxable income for your parents. You have to pay tax on your income as per normal rule and out of that income, after paying tax on it, you can gift to your parents. The gifted money will not be taxable income for your parents.