HRA and 80C

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Shiv om Jindal (Querist)
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22 January 2010 Hello friends, i need certain clarification regarding whether an employee who has availed a Home Loan can take the Benefit of both HRA and deduction u/s 80C and also interest as he is employed at a place other than the place of his house. and will it be treated as self occupied for House property income.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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22 January 2010 No.HRA & Housing interest on self occupied both together cannot be claimed

If you are showing rental income for the house you can claim interest and HRA for rented house

CA Prashant Gupta

CA Prashant Gupta (Expert)
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23 January 2010 As per my point of view if house for which loan has been taken is in other city and person is working in other city and getting HRA then he can claim HRA and interest and 80C deduction all.
Because for HRA exemption no provision for employee has house or not only this to prove that he is giving rent.
for interest claim u/s 23(2)(b) value of income from House is NIL and there is no restriction for living in this house. So interest is claimable.
for 80C only requirement is repayment of loan taken for construction/purchase for residential house and income of this should be in income from House Property which is OK in this case. No restriction whether employee should live there.

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