House Rent Allowance

This query is : Resolved

Sundararajan G (Querist)
Follow

30 January 2010 Dear Sir,

One of our employee has this case :

Mr.x has a owned house and he is claiming as self occupied and gets exemption in chapter VI for principal and interest.

At the same time he is residing in a house which is owned by his father.He pays rent to his father thru cheque,he has a valid leave and license agreement.He has provided rent receipts, paid rent thru cheque and has all valid documents.

My query is : is he eligible for both HRA and chapter VI deductions ? Can you please cite any case law for this if any. or any section reference ?

rgds,
sundar

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
Follow

30 January 2010 Both can be availed if the place of work is far away from the self occupied house.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

30 January 2010 Yes.both can be claimed if the own house and employment in different places

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
Follow

31 January 2010 agree to both experts

Sundararajan G

Sundararajan G (Querist)
Follow

01 February 2010 Thanks for your replies. But what if both houses are in same city ?

I was not clear in the first question so againt I put it;

1. Can he claim HRA?
2. Can he claim principal repayment exemption in 80C?
3. Can he claim Interest payment in housing income?

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
Follow

01 February 2010 1) He can claim HRA Exemption.(Sec 10(13A)
2) Principal amount is deductable u/s 80C.
3) He can claim Interest payment in houseing income.(Sec 24)(b))

BUT, is he is claiming his own house as self-residence purpose, then he should not receive any benefit from that house(Sec 23(2)).

Regards!!!

Vishnu Saboo

Vishnu Saboo (Expert)
Follow

13 February 2010 for availing HRA exmption U/S 10(13A), it is necessary that he is paying House rent, and he have no other house, which is declared by him for self occupied.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now