HOUSE RENT & INTEREST ON BOROOWING CAPITAL

This query is : Resolved

jitender sharma (Querist)
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02 February 2008 MY QUERY IS AS FOLLOWS

I HAVE A HOUSE IN MY NAME IN GURGAON AND FOR BUYING THAT I HAVE TAKEN LOAN FROM BANK AND PAYING INSTSTALLMENTS. BUT I AM RESIDING IN DELHI AS I HAVE JOB AT THERE.

I AM CLAIMING RENT RECEIPT OF RS 8000/- PER MONTH AND RS. 1,50,000/- AS INTEREST ON HOUSING LOAN.
PLEASE CLARIFY ME THE SAME AS MY IT DEPARTMENT OF COMPNAY DENY TO ACCEPT THE BOTH THINGS AS THEY SAID YOU HAVE TO CLAIM ONLY ONLY ONE BENEFIT. PLEAE SOLVE THE QUERRY AS EARLY AS POSSIBLE. WITH DETIAL OF SECTIONS AND CASE IF ANY.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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03 February 2008 You are entitled claim both, as you have to reside in a different place than the one where your property is located. That is HRA as well as deduction in respect of interest can be claimed.

Aditya

Aditya (Expert)
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04 February 2008 You are entitled to claim both.
1.S. 10(13A) r/w Rule 2A talks about HRA. Conditions for claiming HRA
a. You must actually incur the expenditure
b. You must not be the owner of the house wherein you are residing i.e u must not be the owner of the Delhi house.
c. You must be receiving HRA specifically for the purpose of rent.

Nowhere is it stated that u cannot be the owner of another house.

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