Salary & House Property

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This query is : Resolved

Abhishek Rathi (Querist)

31 March 2010 Suppose if m receiving H.R.A & residing on a rented flat, then i purchased a flat in d same city wid the assisstance of housing loan.i have opted for claiming H.R.A.in my company.

How can i claim interest on Loan which amts to Rs 130000 & my M.v of flat is Rs 150000.

how can i claim both.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)

31 March 2010 There are differences of opinion for claiming both HRA and Interest on HBL if both houses are situated in the same city.

I believe the department can disallow the one of the claim and will allow either HRA or Interest however I can't substantiate my opinion by referring any section or judicial pronouncement.

So would like to hear other experts opinion with some clear direction.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

31 March 2010 An assessee is residing in rented house away from the own house due to his employment/business reason the for income from the particular house property is to be calculated as self occupied property per sec.23(2)(b).so this section is giving permission to take interest deduction and for HRA claim only assessee is to stay in rented house and paying rent and getting HRA from his employer so here also eligible for claiming HRA exemption

my view both can be claimed if the city is different