Income from House Property

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Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2010 In case one is living in the same city and is the owner of one house which is taken on loan ,but staying at some other premises on rent as the space in his own house is not sufficient (also he is regretting HRA from the company)?what will be the treatment of loan repayment ,interest on loan repayment ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

30 July 2010 As per Income tax One house always can be considred as Self occupied and also the person not claiming HRA exemption also, my view no issue on this claiming as Interest on housing loan, but instead of vacant, the person can be let out the property alongwith rental income and interest with no limit of interest

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2010 yes the property which he owned is rented out and he is getting Rent ,so the position & doubt is as under:
-He want to claim interest as deduction on interest for the property which is let out (that is not an issue i believe) but at the same time he is living in the same city on rent (paying rent )& getting HRA from the company.

-so is there any provision which restrict in any manner the amount of interest or HRA(leaving normal HRA rules)(

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

31 July 2010 Sec.23(2)b is telling, if the assessee staying away from his own house due to employement and business purpose the valuation of that house can be considered as self occupied tax treatment.

As per as HRA - condition need to pay rent

As per as Interest- sec.23(2)(b) can be taken,

but incase while assessment the A.O. will question how the both HRA and housing interest in the same city? for this question you need justify. then you can go ahead

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