Tax benefit for both hra and home loan repayment

Tax queries 1203 views 4 replies

SVarma

Consultant

32 Points Posted on 10 July 2012

I've been servicing my home loan and claiming tax benefit for principal and interest components for the past several years.

Due to a job change, now I'd be moving to another city where I will have to live in a rented house. I would not be letting out my own house as my retired father wants to stay back.

In my case, will I be allowed to claim tax benefit for both the rent I pay in the new city (HRA) and the EMI that I will continue to pay towards the home loan?

If yes, how do I do it? Please advise. Thank you.

Replies (4)

Saurabh Maheshwari

B.com ACA

5923 Points Posted on 11 July 2012

Yes,you will be get deduction of rent paid u/s 80 gg or exemption of HRA u/s 10(13A). But pls let any other forum member confirm it.

Saurabh Maheshwari

B.com ACA

5923 Points Posted on 11 July 2012

And also deduction of int and housing loan repayment.

CA Miss Naamah

N H R & Associates

377 Points Posted on 11 July 2012

Yes, you can claim both the benefits. You need a confirmation from bank stating the amount of interest and principal. You need to give a declaration to the company that the house property on which you have taken housing loan is self occupied and not let out.

This will sort out your issue.

HRIDAYNATH PATRA

Profession

261 Points Posted on 11 July 2012

Yes, in your case you can claim benefit for HRA u/s 10(13A), HBL Principal repayment (u/s 80C) and HBL interest (u/s 24). Following are the prerequisites:-

1) You are in receipt of HR allowance from your employer

2) You are actually paid rent

3) You do not have any own house in the city where you are staying for the purpose of your job

You have to submit to employer declaration in Form 12BA regarding your HBL principal and interest repayment. For HRA exemption you have to submit rent payment receipt to your employer or any other document(us/s as per their requirement.

If you are not receiving any HR allowance, then also you can claim benefit of HR payment u/s 80GG.