HOUSE BUILDING ADVANCE
Housing Loan for Central Government Employees…
The advance granted, who has completed minimum 10 years continuous service.
The advance granted for construction / purchase of house / plot.
The advance granted for purchase of ready-built house / flats.
The advance granted for buying a plot or flat under Co-operative Schemes.
The advance granted for enlarging existing accommodation.
The advance granted for purchase of houses / falts under Self Financing Housing Schemes and Co-operative Group Housing Schemes.
Income Tax Rebate for HBA :-
Exemption for Interest portion of HBA is admissible up to maximum of Rs. 1,50,000/-.
If any individual has drawn House Building Loan from any other financial institution, at the end of the year he should obtain a certificate from that financial institution showing repayment of loan details. In that repayment of Principal sum and Interest portion should be clearly mentioned. Accordingly income tax rebate can be taken on principal sum and interest sum.
Interest is calculated on the balance of HBA outstanding on the last day of the month i.e. on the IBB just like calculation of interest on advance for purchase of conveyance, etc.
Interest on H.B.A. is exempt u/s 24(b) of Income Tax Act.