Hli and principal amount repayment if living in rental house

Whether the exemption of 80C Home Loan (Principal Amount) and Banefit on Interest on Loan (HLI) of section 24 will be available to the Salaried person who is getting the HRA, if the perion is reside in rental house in Non Metro City (Faridabad) and work and have one house property in Metro City in NCR (Delhi-Gurgaon).....

Replies (7)

Yes you will get Home Loan Principal And Interest Beefit Even You Are Salary Person But For HRA You Don't have any residential house in same CITY on your OWN name

If the employee has the Rental House and Purchased Property in the same city and working also in the same city...then...?

Then you don't get HRA, but do get 80C and 24(b)

Hello, If the owned and the rented property are in the same city then tax exemption on both cannot be claimed. However, if any individual is able to prove that the owned property is quite far from the place of work and hence the rented accommodation has been availed, then tax exemption on both HRA as well as housing loan can be claimed.

Hi Vishal

Can you quote the section or notification regarding this.

Hello @ Prateek 
Refer the decision of Hon’ble High Court of Delhi in CIT v. Mr. Justice Avadh Behari Rohtagi [1986] 157 ITR 441.

.

 HRA Exemption

Explanation to section 10(13A) provides that HRA exemptions shall be available if both the conditions are satisfied :

(a) the residential accommodation occupied by the assessee is not owned by him ; and

(b) the assessee has actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by him.

 

An assessee can claim deduction u/s 24(b) in respect of housing loan taken to acquire a house property. At the same time, exemption of HRA u/s 10(13A) can be claimed in respect of rent paid for residential accommodation occupied by him if he resides at a place other than owned by him

Hi Vishal

But where is mentioned that if the person lives in a rented property and owns a property in same city , then deduction can't be claimed. 

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