Claiming of both home loan and hra together.

Section 10(13A) read in conjunction with Rule 2A states that an assessee is not entitled to claim an exemption if the assessee receiving HRA stays in his own house, or does not pay any rent or incur any expenditure towards rent.

In your case, you're not living in your house, and you're paying rent for your personal accommodation.

A plain reading of the section suggests that you are not barred from claiming a deduction from the amount of HRA received, while simultaneously claiming a deduction for the interest payments under section 24b and a deduction for the principal sum paid under section 80C.

Therefore, you're free to claim a deduction for the HRA received(The computation methodology can be found in Rule 2A of the Income Tax Rules, 1962), and also deductions for repayment of your housing loans along with interest, only to the extent of your burden after apportioning your share of the payment in the joint loan.

Also, make sure that the rent you're paying exceeds 10% of Salary. If it doesn't, you cannot claim a deduction for the HRA.

Cheers,
Sam

SAM IS RIGHT

Dear Sam,

Thank you for brief assistance. But while filling ITR 1 the interest amount of the home loan which is applicable in section 24(B), that I need to show in let out property or self occupied. and if I need to show it in let out that how to show the income earned from that property as I don't have any because my parents lives there.

Pinkesh,

You will have to show it in self-occupied property. There is no bar from mentioning it as a self-occupied property.

In fact, the computation methodology under section 22, i.e. Income From House Property, would result in an income, should you choose to show it as a let-out property, which it isn't of course.

Hence, you'd do well to show it as a self-occupied property.

Cheers,
Sam

Is infrastructure bond have 15000 extra limit apart from 80C, as there is lots of confusion as there isn't any clarity about this bonds in last budget?

Pinkesh,

I'm assuming you're talking about Section 80CCF?

Section 80CCF stands repealed from the Assessment Year 2014-2015.

Consequently, any investment in infrastructure bonds would not bring about any tax benefit.

So if you're planning your taxes, avoid investing in Infra Bonds. You'd do well to invest in Tax-Saving Fixed Deposits instead.

Cheers,
Sam

ohk, thank you very much

Dear Reader,

Mine is a similar case as Pinkesh. Home loan is taken for a flat in which elder brother and parents reside.

We have one more flat in the same city which is the name of HUF and father is Karta. I sta in this 2nd flat.

Can I pay rent to HUF and claim HRA along with Home loan deductions.

Regards,

Mudit Raniwala