House property

This query is : Resolved

pooja agarwal (Querist)
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23 October 2011 Can a person claim both HRA and House property deduction as self occupied if the house proprty is situated in another city

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 October 2011 For claiming HRA deduction rent paid is must. This means that the assessee must have paid rent otherwise the whole amount of HRA will be taxable.

Ig the assessee claims a property as self occupied, he cannot claim HRA deduction.

Lets suppose the assessee is working in Mumbai and has a house property in Delhi.

Now, he is paying rental in Mumbai. So the house property in Delhi cannot be self occupied by him.

In such a case, the house property in Delhi will be treated as deemed to be let out.

An assessee cannot claim HRA deduction and also treat a house property as self occupied.