Old building not safe for stay but interest on housing loan

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2013 Currently i am staying in Building which 35 years old and not so safe for residence. But i am repaying housing loan on this house. Now, i am planning take another property on rent in the same city and want to shift there.

Should i claim HRA and Interest on Housing Loan both deduction?

I dont want to let out the property as there risk of life involved. So, what are the options avaiable to me to calim tax benefit for Interest and Housing Loan repayement ?

I think NOTIONAL RENT can not be arrived !!!

PLEASE ADVISE...

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

30 May 2013 You cannot claim the both HRA & housing interest if you are having both the houses in same city. Option is of you either you can claim HRA or housing interest, i suggest you to calculate the tax benefit for both options and which is more benefit that you can take.

In case if you want to claim as let out property, you can claim the notional rent based on the municipality valuation you can calculate and claim.but as good governance that is not suggestible

you can go for renovation of the house, even loan taken for repairs & renovation that interest is eligible for deduction u/s.24b

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