Home Loan and HRA

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Two brothers currently pay rent to their father to claim House Rent Allowance (HRA). They plan to buy a property with a home loan, with themselves as co-applicants and their father as the owner. They are asking if they can claim both HRA and home loan interest deductions on their Income Tax Returns (ITR). The advice given is that if the father is the sole owner, they cannot claim home loan interest benefits. However, if they are co-owners and co-borrowers, they can claim home loan interest deductions, but HRA claims would require specific conditions like different city locations or commuting difficulties.

Jatin Sachdeva

Jatin Sachdeva (Querist)
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14 June 2023 Hi Sir/Ma'am,

We are two brothers and paying rent to father to claim HRA. Now we are planning to buy one property by taking home loan. Brother and I will be the co-applicant and property will be on the name of father. So my question is can we (brother and I) claim both HRA and the home loan interest while filing ITR?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 June 2023 If only your father would be the only owner of the property to be purchased, you will not be able to claim home loan interest benefit, even if you be coborrowers of the loan.

Jatin Sachdeva

Jatin Sachdeva (Querist)
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14 June 2023 Sir, if we are also the owner of the property then can we claim both HRA and benefits of interest of home loan?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 June 2023 If you are co owner and also co borrower of the loan, you can claim home loan interest deductions, but for HRA, there should be specific requirements like cities be different, or workplace inconvenient to commute from your house etc...

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