I own a house property and due to the distance to my office, I stay in a rented house near my office and parents occupied the owned property. Do i have to calculate notional rent and also claim HRA? In that case which is more beneficial notional rent or HRA?
14 January 2013
Yes, you can claim HRA from your employer. You can claim rebate on HRA by submitting the rent receipt in your office. The rebate will be Least of these : 1)Actual HRA received by you in the year or 2) Annual rent paid by you less 10% of your annual salary or 3) a percentage of your salary ( 40 % to 50%) depending on the class of city you stay. You are elible to claim your house as self occupied.The interest you pay annually for loan taken for building your house becomes negetive house property income ,subject to a limit of Rs 1,50,000(there are certain conditions.. i do not want to elaborate). This negetive income can be set off against any other income like salary income etc.The repayment of principal amount of loan taken for building the house qualifies for deduction u/s 88.
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