Claiming hra and home loan interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2011 Hi,

I am a salaried employee and entitled to HRA from my organisation. I have a homeloan on my house in Mumbai however I am not occupying the same due to personal reasons. Hence I have rented out that premises to a tenant on which I earn the rent and show it as income from house property.
I am staying with my father in his house which is again in Mumbai. I am paying rent to my father who shows it as rent income in his return.

In the above circumstances, can I claim both HRA and interest u/s 24?

Appreciate your response.

Thanks
Regards

Regar

Yogesh Agarwal

Yogesh Agarwal (Expert)
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23 November 2011 Yes you will definetly get the benefit of HRA because the explanation to the section 10(13A) speaks about two things viz:
The section shall not apply in the following situation.....

a) The residential accomodation occupied by the assessee is ownedd by him or

b) the assessee has not actualy incurred expenditure on payment of Rent...

But in your case the house in which you reside is not owned by you and also you pay rent to your landlord...

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