What Is The Full Form Of HBA In Income Tax?
HBA full form in income tax is House Building Advance. This is a special program from the Indian government. It helps Central Government employees build or buy new homes. Employees can also use this money to buy land or to pay loans for these reasons from approved places. HBA aims to help government workers get homes without the heavy costs that usually come with such big purchases.
Who Can Apply and How?
To apply for HBA, an employee needs to have worked for at least 10 years without a break, no matter if their job is permanent or temporary. The application requires providing detailed paperwork showing the ownership of land or a house, and he or she meets certain rules, for example, that none other than the wife of the employee owns any house, land, or flat. Thereafter, you can duly fill out a 12-page detailed form with due caution and apply for it online or offline.
Usage and Financial Conditions:
Following the 7th Pay Commission’s advice, employees can now borrow more money. As per the recommendation, up to 34 months of his basic salary or a maximum of Rs 25 lakh can be borrowed, depending on how much he can pay back. An apartment ready for occupation was to be purchased with the money of the approved groups, Housing Boards, and Development Authorities, whose members or registered private builders alone could construct buildings. Though, you cannot buy directly from private individuals.