disallowance of interest on housing loan

 he cannot claim hra exemption because exemption is not available to an assessee who lives in his own house , or in a house for which he does not pay any rent (u/s 10(13A))

he can either go for the hra exemption or claim interest u/2 24 on self occupied property, not both.

In Section 24(b) it is no where mentioed that the property should be self occupied. It maybe possible that the family members of the persons are living at that home which is taken for loan.

Whereas Section 10(13A) is allowed only when it is occupied by the assessee.

So according to me both can be allowded if proper proofs are furnished.

Do correct me if im wrong.

The assessee can't claim HRA as he already owns (lives and claims as self occupied also) a house property in the same city where he is working..............

HRA is allowed only if the assessee doesn't own house property.....Only if the property is not occupied by him, that he can claim HRA even if occupied by any of his family member by showing as payment of rent to that member.............

Yes, the interest can be allowed.

As per section 23(2) self occupied property means used for self occupation OR house which could not be occupied for reasons of employment or biz/prof elsewhere. The conditions for treating as SOP are given in 23(3): not actually let out and no other benefit is derived from such property.

Deduction u/s 24(b) for SOP only says deduction for a 23(2) property shall be rs.30000/- or rs.150000/- as the case may be.

So interest is allowable as the employee only claims the house to be SOP and may not be occupying it due to reasons of employment. In addition he can also claim HRA exemption.

Interest Cann't claim because u can claim either HRA or interest

VERY GOOD MANJUNATH

THIS QUESTION IS VEY CLERALY GIVEN IN V.K SINGHANIA [69.1-2.a] JUNE 08 EDITION

SORRY I WAS WRONG BOTH DEDUCTIONS CAN BE CLAIMED

I AM SURE AND DAM CONFIDENT

 Hello Mr. Manjunath

In this case you can claim interest even if this is self ocuupied property.

But you cant claim HRA exemption u/s 10(13)A

 If you proove that your family members or dependent parents are residing in the Self Occupied Property.

You can claim bothe the deductions

Sudhanshu you might have read that if a person for his employment or business has to leave his place where he has a house he can get HRA and benefit of self occupied property if and if he has not earned any income form such house- means not let out. So you are correct. But the fact and reason is this which will clear your doubt.