Hra deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2015 'A' is employee who is drawing hra of rs 5000 pm which is exempt under section 10 if take house on rent . he has also a house against which he has taken loan and paying a interest of rs 3 lakh per annum. my query is 1. can he claim hra deduction and loss from property for interst simultaneously. 2. if yes can it be used as tax planning tool as interst on self occupied house is restricted to 2 lakhs while for rental house there is no limit. it is assumed that the house can fetch only 5000 pm as rent while let out. if 'A' show it rent out instead of self occupa[ied. pls do not guess. reply only if u r sure and cite the relevant section etc

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 March 2015 An assessee can claim deduction u/s 24(b) in respect of housing loan taken to acquire a house property. At the same time, exemption of HRA u/s 10(13A) can be claimed in respect of rent paid for residential accommodation occupied by him if he resides at a place other than owned by him.
See the link.
https://taxguru.in/income-tax/simultaneous-claim-interest-housing-loan-hra-deduction-housing-loan-interest-capital-gain.html

Querist : Anonymous

Querist : Anonymous (Querist)

15 March 2015 if he reside at the same place of employment then he can claim both?. if he reside with his son and pay him rent and his own house is rented out . then there will be no restriction on deduction of interest

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 March 2015 Both can be claimed provided you stay in another house and pay rent for it.

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