Tax applicabiliey on salary hra & interest on housing loan

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.

Interest on Housing Loan dealt under section 24 b  of IT ACT 1961 is also different.

claiming of both HRA & Interest on Housing Loan is Possible only when the property on which Interest is claiming is Letout. if it is self occupied, then claiming of both is not possible.

House rent allowance (HRA) is received by the salaried class. A deduction is permissible under Section 10(13A) of the Income Tax Act, in accordance with Rule 2A of the Income Tax Rules. You can claim exemption on your HRA under the Income Tax Act if you stay in a rented house and get a HRA from your employer.

Agreed :claiming of both HRA & Interest on Housing Loan is Possible only when the property on which Interest is claiming is Letout. if it is self occupied, then claiming of both is not possible.

 

Yes you can avail both claim, if you are living at rent due to job and your own property is not let out. If preperty is let out then you can not claim HRA exemption u/s 10(13A), you can calim only interest on loan for house property u/s 24b.

To add:

You can claim deduction of Housing loan interest while arriving Capital gains as a cost of capital asset.

Refer:decision of Chennai Bench of the Income Tax Appellate Tribunal in the case of ACIT v. C. Ramabrahmam (2012).

To add:

You can claim deduction of Housing loan interest while arriving Capital gains as a cost of capital asset at the time of transfer/sale.

Refer:decision of Chennai Bench of the Income Tax Appellate Tribunal in the case of ACIT v. C. Ramabrahmam (2012).

Not agree with Nikhil & Tejaswi.

If house is self occuiped then claiming of both is allowed.

Not agree with arif

If house is letout then claiming of both allowed.

You took a home loan and your house is now ready for occupation. You have rented the same out while you reside in a rented house. The Income Tax Act allows you to claim both HRA and home loan benefits.

However, in such a case, since you are the recipient of rent because you have let out your own house, that income is taxable at your hands.

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.