Hi.
I am aware that a salaried individual can claim both HRA and Interest on Housing Loan. But it involves only 1 house and the owner living on rent. Hence, claims both the benefits.
In my case, I am salaried and claim HRA. I have purchased 2 properties in Navi Mumbai (both in my and my wife's name). One of them is under construction and is expected to be ready by Dec'13. The other is ready-to-move-in. I am taking Housing Loan for both the properties. The under construction property would fall under the recently inserted clause of additional Rs.100,000 tax benefit for Interest on HL u/s 24(b). The ready to move in property has a higher Loan amount, hence higher Interest amount too compared to the other Loan.
I want to claim Interest on Home Loan on both my properties and also want to claim HRA.
Can I assume both to be "Deemed to be Let-Out (DLO) or is it necessary to consider one of them to be self-occupied? But in case I assume any 1 to be self-occupied, I might not be entitled to claim HRA.
Please advise how to structure the same to be most tax-efficient. My query is for FY 2013-14 and not for FY 2012-13.
Please Note: My company (employer) does not consider Navi Mumbai as a Metro city as it is governed by a separate Municipality Corp.
CAclubindia
