HRA & Housing Loan Interest

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nagpapu (Querist)
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24 December 2008 Hi,

One of my client is Govt Employee working in Mangalore, he stayed at a Rented House alone. But his Own house is at Bangalore where parents and Family resides.

Here my question is whether he is eligible to claim both HRA for Rented House at Mangalore and Interest on Housing Loan at Bangalore.

Gayathri Devi

Gayathri Devi (Expert)
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24 December 2008 The House rent allowance is exempt only if an assessee doesnt have his own house property in the same town where he is employed.
In this case the assessee receiving HRA in manglore and he is not having own house property in manglore so he is eligible for HRA.
At the same time he can claim deduction u/s 24 for housing loan interest.

C A GROUP COACHING

C A GROUP COACHING (Expert)
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24 December 2008 YES THE LAW CLEARLY MENTIONS THAT IT IS POSSIBLE IF THE PERSON HAS TO STAY AWAY FROM HIS ORIGINALLY OWNED SOP BECAUSE OF REASONS OF HIS EMPLOYMENT. YOUR CASE FALLS WITHIN THAT PERVIEW

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