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Matter of house property

(Guest)

good evening to all expert,
my friend taken a home loan from bank.his monthly emi is 30000(25000+ 5000).but sir he does not lived in that house.my query is started now if he give his house for rent than he will show his rental income. but he did not gives his house for rent. and also he did not lived in that house. than what happen in this case.can he claim both hra and deduction u/s 24 and 80c. please reply

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CA Manish (Job) (5264 Points)
Replied 12 September 2012

Related provisions under the Income Tax Act, 1961. All relevant sections are mentioned below:

Section 10(13A) requires 2 conditions for claiming HRA exemptions:

1. The residential accommodation occupied by the assessee should not be owned by himself; and

2. The assessee has actually incurred expenditure on payment of rent in respect of the Residential accommodation occupied by him.

Annual Value of Self Occupied Property as per Section 23(2):

property is in the occupation of the owner for the purpose of his own residence; or
cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him, the annual value of such house or part of the house shall be taken to be NIL.

Deduction for interest as per Section 24(b):

where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital

So we can conclude that if a person has a house property and he is also paying the rent for any house property in the same city but at different place then he will be able to get HRA exemption u/s 10(13A) and Interest deduction u/s 24(b)