Can we claim tax benefits on hra & home loan together?

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Shailendra Singh (Querist)

02 February 2015 My factory is situated in Navi Mumbai (Mahape) & our employee resided in Kurla (Mumbai) but had bought an apartment in Nerul (Navi Mumbai) taking a home loan. However, his flat was vacant & he had shifted in Mumbai for his daughter’s education purpose. Can he Claim Tax Benefits on HRA & Home Loan Together? Need your comment.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

02 February 2015 As per as HRA purpose only staying in rented house and getting HRA is fine to claim.

Alongwith HRA housing loan cannot claim if the house is situated in same city or area. only exception given in the provision that incase assessee due to employment and work purpose unable to stay the own house and staying away then he/she is eligible to claim the house as self occupied and accordingly deduction u/s.24 can be claimed

For your query my suggestion is that incase your interest burden in more then you can show the house as deemed to be let out with nominal rental value as per rent control act or municipal act and claim the entire interest portion as deduction instead claiming only Rs.1.50 lakhs

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