What will be tax treatment - If a salaried person is living on rent in city X and that person also has a property in a nearby city Y (like Delhi- Gurgaon) which is currently vacant due to some interior work. The property in city Y has been purchased on loan. This property is near to his current employment place while he is living on rent at a distant place.
Can he avail all of the following - HRA for the rent paid, interest deduction u/s 24 and principal deduction under 80C, for the period when he was living on rent and property was vacant due to interior work?
Yes he can do it....
when dept. asks for evidence he can show the rent receipts and employer - employee agreement for HRA...
This way he can claim both HRA and interest and/ or principle payments...
CAclubindia
