Whether Sec 80GG Deduction & Interest on Home Loan can be claimed Simultaneously

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A professional operating under Section 44ADA is paying rent in Delhi while owning a home in Lucknow with a home loan. They want to claim deductions for both the home loan interest (under Section 24/80C) and the rent paid in Delhi (under Section 80GG). The key question is whether these two deductions can be claimed concurrently. The general advice is yes, provided the home loan property is not self-occupied. A declaration (Form 10BA) is required to confirm this.

Manik

Manik (Querist)
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25 December 2023 Hi Team,

We have a client who is a Professional claiming exemption under Section 44ADA for his Professional Income. He also owns a house in his home town of Lucknow for which he has taken Home Loan and claiming deduction under Section 24 for Interest Paid on Home Loan and for Principal under Section 80-C.

Since he is living away from his home town in Delhi on rent of Rs 10000, we want to claim Home Rent Paid of Rs 5000/0 Per Month under Section 80GG apart from Interest of home loan which he is paying as above.

We need to know whether he can claim both deduction in respect of Home Loan and Sec 80GG simultaneously in his ITR or will the system stop us from claiming one of them.

An urgent help in this regard will be highly appreciated.

With Regards,
Manik

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 December 2023 Yes, if it's not a self occupied property.

Those seeking to avail this tax rebate need to submit a duly filled Form 10BA to the government beforehand. This Form is a declaration that the individual filing it does not claim to benefit from a self-occupied property in any location.

Manik

Manik (Querist)
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25 December 2023 Dear Sir,

Thanks for the response but need more clarity with respect to the following statement made by you : -

Yes, if it's not a self occupied property.

You mean to say it I have self occupied property and taken loan on the same then I cannot claim Interest on Loan and Sec 80GG deduction simultaneously.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 December 2023 Yes, you are right....
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