Deduction under sec 10[13A] as well as sec 24

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2010 I have purchased a residential house, while I continue to stay in a rented place in my current city of residence [both house are in same city where I am working]. I have no plans to move to the new house. I pay interest on the loan taken to purchase the new property.
Can I claim exemption of HRA received as well as deduction of interest payable on the home loan?

Rahul Gupta

Rahul Gupta (Expert)
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04 February 2010 Yes it is possible. It is not so that you are required to stay in your purchased house.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 February 2010 My view you can claim but the own house Annula value cannot be treated as Nil because

is the Annual value of the House Property away from the Work place?

A person may own a house property; say in Bangalore, which he normally uses for his residence. He is transferred to Chennai where he does not own any house property and stays in a rental accommodation. In such case, the house property in Bangalore cannot be used for self-occupation and notional income there for would normally have been chargeable although he derives no benefit from the property. To save the taxpayer from hardship in such situations, it has been specifically provided that the annual value of such a property would be taken to be â€œNilâ€ subject to the following conditions:
â€¢ The assessee must be owner of only one house property.

â€¢ He is not able to occupy the house property because of his employment, business etc. being away from place where the property is situated.

â€¢ The property should not have been actually let.

â€¢ He has to reside at the place of employment in a building not belonging to him [Section23(2)(b)].

â€¢ He does not derive any other benefit from the property not occupied.

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Deduction under sec 10[13A] as well as sec 24

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