I have the following doubts with regard to Income tax. Pls clarify
Suppose i reside in bangalore, i have taken two housing loans.One for house in mumbai and one for house under construction in bangalore. I am staying in a rented house in bangalore. can i claim HRA as well as 2 housing loan benefits?
Pls clarify immediately. Awaiting your expert advice. Thanks a lot.
16 February 2011
u can claim HRA from bangalore until the house in the bangalore is fully contructed. after the construction gets completed u cannot calim the HRA. you can claim the Interest on the housing loan from mumbai any time for any year. but for bangalore , upto the date of completion of the house , then 1/5 th can claim each year , after completion fully can be claimed.
16 February 2011
At this time you can claim loan benefits on Mumbai House but not on Banglore house becuase it is not completed, whenever your banglore house will get completed then you can start take benefit of loan on that also.
There is no any restriction(u/s 10(13A) on HRA benefit even if you having another home in same city but this restriction is given u/s 80GG.
16 February 2011
When a person is having a house in banglore than he can not claim HRA exemption under the IT Act. Since as per the rules if due to employement, assessee is not able to reside in his house than only he can consider that house as self occupied. If a person is having more than one house than only one can be consider as self occupied and second will be deemed as let out.
CAclubindia
