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When you are calculating HRA for tax exemption,you take into consideration four aspects which includes salary,HRA received,the actual rent paid and where you reside

What are the documents needed for a home loan application if I am constructing a house?

Rashi Tarika,Delhi

Here is a partial checklist that covers most of the documents required for a home loan,if you are constructing on your own land:

Original sale deed of land and extract of Index II

7/12 extract or property register card in your name

Copy of NA permission for land from the collector

Search and title report

Copy of tax paid under Urban Land Ceiling Act obtained from Commissionerate of Urban Land Ceiling and Urban Land Tax

Copy of the building plans sanctioned by a competent authority

Building permission granted by the Corporation

The latest receipts of taxes paid for your land

Estimate of the cost of construction certified by the architect.

What are the various factors that are taken in consideration when HRA is calculated?

Sheetal Malhar,Mumbai

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When you are calculating HRA for tax exemption,you take into consideration four aspects which includes salary,HRA received,the actual rent paid and where you reside,ie if it is a metro or non-metro. If these aspects remain constant through the year,then tax exemption is calculated as a whole annually,if this is subject to change,as in a rent hike or shift in residence etc. then it is calculated on a monthly basis. The place of residence is significant in HRA calculation as for a metro,the tax exemption for HRA is 50 per cent of the basic salary while for non-metros it is 40 per cent of the basic salary.

How can I increase my home loan eligibility?

Yamini Sahay,Lucknow

You can increase this in several ways. Some of the most apt ways to do this include combining the income of a parent or a spouse with your income and thereby obtain a higher margin of debt to income ratio. If you have other outstanding loans or dues,pay them off before you take up a home loan,this will help you repay a higher home loan debt. Another option is to increase your loan tenure so that your EMI outgo is reduced to manageable limits but this also means your total interest cost will go up,which you can mitigate by prepaying at regular intervals and closing the loan eventually at a much shorter tenure.

The expert is CEO,Bankbazaar.com

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