HRA & Housing Loan Repayments

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This query is : Resolved

varun gupta (Querist)

01 June 2009 A person resides in a city and has purchased a house there taking home loan from bank. He pays EMI for this comprising of Principal & Intt components. Now, he shifts to some other city due to change of his job. In that other city he has taken a flat on Rent. Now, can he get HRA benifit for Rent being paid by him along with benifits of House loan repayment? In his owned house, against which he has taken loan, his other family members are residing. Will he show some Rental Income from his family members to claim benifits u/s 24 & 80c?

Pls keep the query open unless you are sure of your replies.

taxindiaconnect

taxindiaconnect (Expert)

01 June 2009 he can claim both the benefits together and do not need to show any rental income from the house he own. Where a person has to reside in house other then the house he owns due to this employment, he can claim the benefit of rent paid and benfit of interest u/s 24 also. Since in your case the rent is being paid in another city due to taking up of employment there, rent and interest deduction are availble. Since I ma sure of my reply, I am keeping the staus resolved

varun gupta

varun gupta (Querist)

01 June 2009 Thanks Rajesh. Can u pls calrify one thing more that what document an employee is required to submit with employer under Income tax rules as proof of Rent being paid by him to claim HRA benifit?