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HRA and Home Loan

Tax planning 921 views 2 replies

ITworker

Sr. Software Engg

25 Points Joined February 2011

Hi,

I Stay in Madhapur, Hyderabad in a rented accomodation. Currently iam paying rent for both my accomodation as well as my parents. So iam planning to take a flat in Secunderabad so that my parents can stay there. I would be staying in my rented accomodation as its near to my company as i work nite shifts. In this case can i claim both my HRA and housing loan for TAX EXEMPTION.

Distance between the praposed flat and my rented accomodation is 21 KM(Approx).

Can any one please advise me on this.

Thanks in advance.

From,

Shashank

Replies (2)

Pankaj Arora

Learner

3134 Points Joined September 2009

Yes you can claim exemption of both HRA as well as Housing loan interest.

ITworker

Sr. Software Engg

25 Points Joined February 2011

Hi Pankaj/others,

Thanks for the reply.

Can i claim only Interest part of the home loan or even the Principle part also.

Today, When i met a banker he said that i have to live in another city in-order to claim exemption from tax, where as iam staying in the same city......will that effect my tax exemption for Housing loan. Please advise...

Thanks once again.....

From,

Shashank