Hra exemption and deduction u/s 24b both allowed or not.

This query is : Resolved

Prajakta Potdar (Querist)
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26 December 2014 Respected Sir

Suppose any employee has acquired house property, for which loan emi is already started, but he has not got possession till date , therefore he lives on rent.

My query is whether, he can avail HRA exemption alongwith deduction u/s 24b or not, if other conditions of deduction u/s 24d are satisfied?

Further, deduction u/s 87A is allowed for those whose taxable income is below Rs.500000 or Gross Income is below Rs.500000? Please confirm.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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26 December 2014 Yes he can avail both benefits since he is not able to live in his own house because has not got possession.

Rebate u/s 87A is allowed if total income that is after Chapter VIA deductions is less than Rs. 5 lac.

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