Hi Experts,
Whether an employee can take HRA benefit if he already opted for housing loan for other place? Housing loan house is in another city than the person reside or staying in a rented accomodation.
Roshani Jain (Employee) (155 Points)
26 July 2016Hi Experts,
Whether an employee can take HRA benefit if he already opted for housing loan for other place? Housing loan house is in another city than the person reside or staying in a rented accomodation.
suresh
(proprietor)
(425 Points)
Replied 26 July 2016
Yes. He can.
Homeowners paying back on their home loan and getting HRA as part of their salary can avail both the house property-related tax benefits to lower their taxable income.
Sometimes you work in one city and live on rent but your family resides in another city and you buy a home where your family is.
A homeowner can claim:
Roshani Jain
(Employee)
(155 Points)
Replied 26 July 2016
Thank you so much for information. So an employee can declare rent for HRA,80 C for prinicpal amount and section 24 for interest amount deductions to his company?
suresh
(proprietor)
(425 Points)
Replied 26 July 2016
You can claim HRA exemption if you are living on rent, whereas you claim deduction for repayment of home loan. You can claim tax benefit for both, but only if you fulfil the conditions.
Let’s say you have bought a house by taking a home loan and you also live in it. In this case, you will not be able to claim HRA, but will be able to claim tax benefits on both the principal and interest.
If you have bought a house with the help of a home loan and live in another house on rent, you can claim tax benefit for both. But if the house you bought and the house you live in are in the same city, you should have a genuine reason for not living in the house that you own. The reasons could be that the house you own is too far from your workplace, or the commute is very difficult.
You may need to provide these explanations to your employer, or the income tax authority in case there is a scrutiny of the details that you have provided.
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