Thursday, May 7, 2009

Gaur Green Vista Indirapuram – Get benefit on Your Home Loan

The Gaursons Prestigious Project - Gaur Green Vista Indirapuram is nearing completion now. As per the company the Possession of the house would be given on 31st December 2009 which is 9th months of this financial year. While I would soon update everyone on construction status but as per my last visit the progress was much in line with the final date.

If you have taken Home Loan for this property than it makes you eligible for claiming the tax deductions right from the start of this financial year. Yes, you can claim deductions in your salary right from the month of April and should not wait till December for Possession. Read this Article
Home Loan - Are You Eligible to Get Benefit

The Home Loan was distributed by various banks in this project and the prominent ones include ICICI Bank, HDFC, Axis Bank, and PNB Housing Finance.

How much benefit you can get- Lets take Mr. X scenario as this will help you to do your calculations (all figures are approximate ones)
Loan amount- Rs 30 lakhs
Bank- Axis Bank
Rate- 11% (now 10%)
EMI- Rs. 30966 (opted for reduction in tenure than EMI- so EMI is constant)
Principal- Rs. 50,000/year (approx till now)
Interest- Rs. 320000/year (approx till now)
Interest paid till April 2009- Rs. 5 lakh (from October 2007 to April 2009)
Home Loan- In name of Mr. X and his wife Mrs. X
Ownership- 50% each
1) Self Occupied- 1 lakh in principal, 1.5 lakh in Interest plus 1/5th of total interest paid before possession for next 5 years(to both individually)
So in this case the total benefit (individually) would be
Principal- Rs. 25000
Interest- Rs. 160000 + Rs. 50,000 (1/5th of Interest paid in previous financial year)
- Rs. 210000
But the maximum interest that can be claimed individually is Rs. 150000.
Note- If you in same city than either you have to let go your HRA benefit or show your property as rented.
So in self occupied both Mr. X and his wife stands to gain Rs. 8600 approx. together each month or Rs. 4300 individually. This is 36% of their EMI.
2) Rented- If you show your property for rent in this year than Mr. X stands to gain a lot this year as whole of interest (minus 70% of rent) would be deductible. However from next year the benefit would be less than that of self occupied.
There are many scenarios that related to self-occupied or rented. In case you need any help than you can post your comment at below post.
Home Loan - Are You Eligible to Get Benefit

I am sure author will help you.                                                              

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Rajender Rawal said...

Thanks for such a useful information… but I’m bit confuse here if we get this possession on Jan10, then how it is possible to remove my HRA and rent slip shown from my salary structure for the period of Apr09 till Dec09.

Rajender Rawal

Chilli Flakes said...

Mr Rawal, Do you live in same city. If yes than you have to give the declaration to your company in January. Your company HR would adjust everything.
There is no need to remove HR and rent slips as everything will get counted
1) The rent paid by you for 9 months would be counted
2) Complete deductions of Home Loan would get counted even if you live in your new house for three months.

One of friend got possesion in March this year and whole of his interst of same year was considered for calculation.

chilliflakes01 said...

Mr Rawal, Give declaration to HR now and get both benefits. Tell them about the construcction and possesion thing. This is a law and they would know about it.

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