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
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
CAclubindia
