Hi Experts,
Can an employee claim HRA as well as benefit on home loan(principal + interest) in the case of
- if he is residing in a rented apartment
- he is constructing a new own house.
- he is paying partial EMI on the housing loan.
- the house being constructed is in the same city he is residing in.
Please clarify.
Cheers....
hello, The Income Tax Act treats HRA and home loan deductions under separate sections independently. The two are not interconnected to each other. HRA is dealt with in section 10(13A) Rule 2A while home loans are entitled for tax benefits under section 80C (tax benefit on principal repayment) and Section 24 (tax benefit on interest payment) of the Income Tax Act. Hence, feel free to avail both tax benefits accordingly.
However, tax benefit of home loan under this section for repayment of principal part of the home loan is allowed only after the construction is complete and the completion certificate has been awarded.
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