HRA and loan deduction for parents living in my home

Yes you can claim HRA.

Yes You can take the benefit of HRA under sec 10 & home loan under sec 80C

for claiming loss on house property you have take muncipal value ,actual rent standred rent whichever is higher

If an employee for employment purposes cann't occupy the house owned, then he can claim the HRA exemption u/s.10(13A).

Since the House Property is owned and let out, the assessee can also claim the deduction u/s.24(b) of unlimited amount of interest paid on housing loan along with the deduction u/s.80C for the principal repayment.[Note : the let out property will have to be compared in your case for the municipal valuation for calculating the reasonable lettable value.]
 

Answer :-  1. Yes, you can claim HRA U/s 10, Home Loan Interest U/s 24(b) and  also Home Loan Principal U/s 80C Deduction for your taxation and you create your computation in this way for maximum reducing the Tax is as follows as mentioned below “Statement on Computation”.

STATEMENT ON COMPUTATION

Income from House Property

Net Annual Value                             =    60000/-(That's better for you if possible to increase this Amount)

Less: Deduction U/s 24

         Standard Deduction @ 30%  =     18000/-

         Interest on Loan                     =    660000/- *

Income From House Property is equal to Rs.                                             (-) 618000/-

* Deduction fully allowed when Let-out the house but if property not Let out(i.e. Self occupied) than maximum deduction allowed up to Rs. 150000/-

Income from Salary

Income from Salary is equal to Rs.                             (Assumed Figure)   720000/-                                                       

Note: You also claim for HRA as per IT Act.

GROSS TOTAL INCOME                                                                           102000/-

Less:- Deduction Under Chapter VI A

 U/s 80C  :-  LIC Paid                                                                0/-

                     Home Loan Principal                                      96000/-

                                                                            Total       96000/-

But maximum amount allowed for deduction up to Rs.                                  96000/- **

TOTAL INCOME                                                                                                   6000/-

** As per IT Act, Deduction allowed under chapter VI A to the extent of positive Gross Total Income, so in this case deduction allowed fully(But Maximum up to 100000/-) but if gross total income is Negative than Deduction not allowed or allowed to the extent Positive Gross Total Income.

NOTE :-

1. You Must take as property let out to Father so as the Maximum Deduction allowed from Interest on Loan

2. If your salary is less than assumed figure than you increased the amount of Rent Received(so as to possible) Therefore the result is,  you able to claim fully deduction under chapter VI A. 

3. If your salary is less than assumed figure and if not possible to increased the Rent than No Deduction allowed Under Chapter VI A(beacause Gross Total Income is Negative) BUT Loss arise from House Property is Carry forward in next  8 years and set-off against House Property Income.

Mr. A jain

There is no problem in claiming HRA  exemption and also deduction u/s 80C. But the problem is whether to treat the property as self occupied for residence or let out to parents.

Total interest pay out is Rs. 6,60,000.

Suppose it is treated as SOP-R then maximum deduction of interest can be claimed is Rs. 1,50,000 from which you are not satisfied. Therefore let it out to parents. Let us do it.

I assume the market rent as 20,000 p.m. (i could guess it from your interest amount)

2,40,000

(72,000)

(6,60,000)

(4,92,000)

So now you are happy. But do make sure your parents file has this 2,40,000. There should cash transfer from your account to your account.

If you are taking a token amount of rent from your parent then  AO might apply the theory of avoidance of tax.

Thanks