HOUSE BUILDING ADVANCE
Housing Loan for Central Government Employees…
General Rules for HBA :-
The advance granted to all permanent 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 / flats under Self Financing Housing Schemes and Co-operative Group Housing Schemes.
General Conditions for HBA :-
Employees should not have availed of any loan or advance for the purpose from any other Government sources.
Employee or spouse or minor child should not already own a house.
Cost Ceiling :-
Cost of the house (excluding cost of the land) should not exceed 134 times of the Basic Pay, subject to a minimum of Rs.7.5 lakhs and a maximum of Rs.18 lakhs. (If both husband and wife are working central government services, the pay of both of them will be taken into consideration for calculating the cost ceiling).
Sanction Amount :-
The amount of House Building Advance admisssiable for employees is 34 times of the Basic Pay or Rs.7.5 lakhs or cost of the building or repaying capacity, whichever is least.
RATE OF INTEREST :-
(Note: No interest is chargeable beyond the date of retirement / death of the Government Servant.)
HBA
sanctioned amount
|
26-7-90 to
15-12-97
|
16-12-97 to
31-3-2001
|
1-4-2001 to
31-3-2002
|
1-4-2002 onwards
|
Rs. 25,000/-
|
7.5%
|
7.5%
|
6.5%
|
6%
|
Rs. 50,000/-
|
7.5%
|
7.5%
|
6.5%
|
6%
|
Rs. 75,000/-
|
9%
|
9%
|
8%
|
7.5%
|
Rs. 1,00,000/-
|
9%
|
9%
|
8%
|
7.5%
|
Rs. 1,25,000/-
|
10%
|
9%
|
8%
|
7.5%
|
Rs. 1,50,000/-
|
10%
|
9%
|
8%
|
7.5%
|
Rs. 2,00,000/-
|
11%
|
11%
|
10%
|
9.5%
|
Rs. 2,25,000/-
|
11.5%
|
11%
|
10%
|
9.5%
|
Rs. 2,50,000/-
|
12%
|
11%
|
10%
|
9.5%
|
Rs. 5,00,000/-
|
….
|
11%
|
10%
|
9.5%
|
Rs. 7,50,000/-
|
….
|
12%
|
11%
|
10.5%
|
(Note: The advances carry interest from the date of payment of the first installment and is calculated on the balance outstanding on the last day of each month.)
Income Tax Rebate for HBA :-
Repayment of Principal sum of H.B.A. is exempt u/s 88 of Income Tax Act.
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.
Family Planning Concession for HBA: –
Concessional interest to Central Government Employees for promoting Small Family Norms. – The rate of interest will be half per cent less for an employee who undergoes sterlization.
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