TAX planning

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pankaj (Querist)
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30 April 2011 There is a joint property in my name and the name of my brother. First holder is my brother. He is receiving HRA from a corporate. Whether I can rent out my protion of house to my brother. Further there is a loan taken aganist the property in the name of my family. Loan installmments are fully paid by my brother of which he is also taking rebate in sec 24b and sec 80C.

Also clarify whether HRA is available in a case where a person is having his own house but he rents it out and is living in a rented property of wihch he is paying rent.

PARDEEP KUMAR AGGARWAL

PARDEEP KUMAR AGGARWAL (Expert)
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02 May 2011 Dear Pankaj,
ar
In your case the different scenarios are being replied hereunder:

1.If you have your own Home in the same city where you are working, then no HRA exemption can be claimed. It is possible only in case where your workplace is far from the place where your residential property lies.
2. you car rent out your property (your share) to your brother.
3. your brother is wrongly taking 24b & 80C deduction when he is not sole owner of the house. He can take only for his own portion not against yours.
4. The financial Institution from where you people have taken home loan can not provide certificate for principal & Interest payments in the name of your bro.
5. plz specify your family status (as you have borrowed loan in the name of your family)

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