Hra & housing loan repayment

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Kausalya J (Querist)

07 March 2014
What to do if employees claim both HRA exemption & self occupied house property's principal & interest while claiming exemtion from TDS salary?

Nikhil Kaushik

Nikhil Kaushik (Expert)

07 March 2014 yes you can claim both. there is no restriction in the act on the same. interest paid is covered under income from house property and HRA under salary. both are mutually exclusive heads of income.

Kausalya J

Kausalya J (Querist)

07 March 2014
But Sir, interest portion amount of Rs.150000/- is getting reduced from the Gross Total Income of Salary, right?

Nikhil Kaushik

Nikhil Kaushik (Expert)

07 March 2014 Dear Kausalya,

there is no link between income from salary and house property.

the reduction of loss from house property from total income is under the set off of losses which is governed by section 71.

first you calculate income/loss under each head and then do the set offs.

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Kausalya J

Kausalya J (Querist)

07 March 2014
ok. Thank you Nikhil Sir.

Nikhil Kaushik

Nikhil Kaushik (Expert)

07 March 2014 you are welcome Kausalya

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