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Hra

Pooja (Accountant) (103 Points)

13 February 2014

Please let me know if HRA exemption allowed for the assessee who lives in a rental house pays rent but has his owenership house also away from working area. on which he takes benefit of housing loan int. deduction.

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9 Replies

Rohit Gupta (Audit Executive) (271 Points)
Replied 13 February 2014

Dear Pooja,

U can claim both the deductions together. It is not mentioned anywhere in the law that if the person is claiming the HRA exemption then he cannot claim the benefit of home loan interest.

The deduction of HRA is available u/s 10 whereas deduction of Home Loan interest is available in Section 24(b). Both Sections are separate so no issues.

However both the deduction available in rare cases because if the person has its own home then why the deduction is available for Rental premises. But if his own home is in one city and he is doing job in other city then this is possible.

So In yr case it is also possible. So, the answer of yr query is that u can claim deductions in both the sections.

Regards

Rohit Gupta

RHT1203 @ GMAIL.COM

Rahul Rohra (A) (28 Points)
Replied 13 February 2014

Yes he can...

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 13 February 2014

yeah agreed with both of you... he can take hra benefit as well as home loan interest benefit

sri ram (articles) (21 Points)
Replied 13 February 2014

Then what the principle amount paid to repay loan?

Pooja (Accountant) (103 Points)
Replied 13 February 2014

thanks all... espicially Rohit Guptaji........ I work as articled assistant and have to file salary returns of teachers etc. and I was confused about HRA exemption..... thanks a lot

1 Like

Rohit Gupta (Audit Executive) (271 Points)
Replied 14 February 2014

Dear Sri ram

The repayment of Home Loan principle is available Under Section 80C subject to Maximum Rs. 1,00,000/-

Regards

Rohit Gupta

RHT1203 @ GMAIL.COM

V Devaraj Rao (Asst. Manager - Finance) (84 Points)
Replied 15 February 2014

It is not clear that whether own house is LOP or vacant

Because both have different computation

Pratik CA Final (Article Assitant) (102 Points)
Replied 15 February 2014

The principle amount deduction is subject to celing of Rs. 100000 u/s 80C. He can claim both the exepmtion because 80C and sec 10 are independent sections.