Can we claim rent or house loan

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J P SINGH (Querist)
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16 October 2013 hi.. i m residing at rohni delhi as a tenant but i paying my loan for house loan taken for ghaziabad house my ctc is 4L i want to know about what deduction i can take plz suggest me as my income tax is quit more so i want to pay my tax as lowest possible

CA Pallav Singhania

CA Pallav Singhania (Expert)
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16 October 2013 Deduction Under 80C and Sec 24:
Equated monthly installments that are paid to repay home loans consists of two components-principal and interest.
The principal component qualifies for deduction under Section 80C, provided the loan is taken from a prescribed lender (banks, PSU, etc.). The interest component can save your income tax as a deduction from rental income, subject to prescribed conditions.

80GG:

This deduction is usually associated with salaried taxpayers. However, a deduction is also allowed for individuals who do not receive HRA under Section 80GG.

Eligibility:
- If you own a house at any other place you have not been claiming tax concession on income from that house (making annual value of it nil for computing income from house property).

You would have to submit a declaration in form 10BA and enter amount while filing Income Tax Returns in order to claim this tax deduction

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J P SINGH

J P SINGH (Querist)
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16 October 2013 thanks for info
but Sir
if i am getting salary which include basic+hra+conv.+medical (approx 4.25l)

*(1) i am paying principal+interest on my housing loan at rohni, New Delhi.

*(2) i am paying rent 11k for residing at ghaziabad, UP as a Tenant

*(3) i have deposited 35K under PPF

*(4) paid Lic Pre. 24k

can i claim both 1&2 point as i am really paying rent

PLease advise for Income tax benefits

CA Pallav Singhania

CA Pallav Singhania (Expert)
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16 October 2013 I guess Yes,

Both the deduction can be claimed if you satisfy any of the following conditions:

1.You should own a house in a city other than your work place.

2.You own a house in the same city but reside in a rented accommodation for a genuine reason.

You can claim deduction U/s 80C for housing loan principal repayment and u/s 24 for interest payment of loan taken for your own house.

HRA exempt under section 10(13A) is monetary perquisite which is paid or allowed by the employer for providing accommodation to employee. HRA deduction can be claimed for payment of rent for accommodation.

If you are receiving HRA from your employer and reside in your own house, then you can claim deduction in respect of home loan only. HRA deduction is not available to you.

@VaibhavJ

@VaibhavJ (Expert)
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17 October 2013 Agree with expert!!

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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17 October 2013 Agreed with all suggestion by Aryan...perfectly adviced.

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