HRA and Int on Housing Loan

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This query is : Resolved

Manoj Kumar Agarwal (Querist)

26 April 2009 I m paying rent of Rs.7000/- and my HRA is Rs. 8000/- as well as i m also paying Rs. 105000/- as annual interest on Housing Loan and principal amount of Rs. 13500/-, My owned house remains vacant during the year. Can i claim both for I.T Purpose. My owned house and my office are in the same city.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

26 April 2009 If you have a own house and you are staying there you cannot claim hra but you can claim interest on housing loan.

Since you are telling you are not staying there then what you have to do is for the rented house you can claim hra.

And if you have let it out in the previous year and have received rent for the same atleast for a part of the year then you can claim interst as expenditure against that rent.

If you say that whole year it is vacnat then from the department side they may not give benefit of both hra and interest.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

26 April 2009 Yes.
You can claim both in Income Tax

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

27 April 2009 Yes, you can claim BOTH. There is no provision in the Income Tax Act and rule made there under, which prohibits a person from claiming HRA exemption u/s 10(13A) and deduction for interest on loan paid for house property u/s 24(b) simultaneously , subject to the condition laid in respective sections.

CA.Pujah

CA.Pujah (Expert)

27 April 2009 Though most of my friends have answered your querry correctly, but just needed to add one thing more:

For Income from House Property,
You can claim NIL GAV of house for reason of vacancy,but cannot claim the it as one & only one self occupied property u/s 23 as you have not used it for self occupation.
That means your house needs to be in a condition ready to be let out, but you claim that you could not find a suitable tenant. With that you can claim intt on House Property as deduction.

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