Hra and home loan

Tax queries 326 views 3 replies

My client bought a house on loan in Hyderabad but he stays on rent as his own house is 45kms away from his workplace. Can he claim HRA even if he has own house in the same city?  Is he required to show notional income of his vacant home if he is claiming HRA?

Thanks

Replies (3)

it is advisable if he claims both if the property is not let out  let him give some notional rent in declaration and claim interest so that  it will reduce his taxable income 

Yes, A person can claim HRA even if he has his own house in the same city but he must have sufficient documented proofs (like- Rent receipts, rent agreement, deduction from bank accounts- if paid from bank account) to claim the same.

 

Thanks & Regards

Diamond Goyal

do rtp come at home for ca final


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