12 March 2009
Suppose Mr A taken housing loan for a house which is in Baroda but he actually working in Surat and receiving HRA from P Ltd. Co.in surat.
Whether He can claim both 1) HRA exemption by Paying rent in Surat & 2) Repayment of loan (Principal in 80C and Interest as house loss ) pl provide the Act Back up for your answer with sections etc.
12 March 2009
He can claim both. provided he is getting HRA( House Rent allowance) He is residing in a rental accomodation He must not own a house at the place where he is living The exemption will be least of the following 1. HRA received 2.The excess of rent paid over 10% of salary 3. 40% of salary in all place except Delhi,Calcutta, Bomay,& Madras where it is 50% of salary
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