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Hra and home loan benefits

nagendra (ZM) (44 Points)

08 June 2013

Friends

I am a salaried employee. I have purchased on house on loan in the same city and going to get possession by July 1st week. Currently residing in a rental flat and getting HRA exemption benefit. Now I dont want to move to my own purchased house.

Can i still claim HRA exemption along with Home loan interest (deduction from income) benefit in case I lent out my own property and continue residing in rented flat.

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Nikhil Singhal (Article Assistant) (30 Points)
Replied 08 June 2013

Hi Nagendra..

You can claim HRA exemption, provided you should pay tax on the rented income received under "Income from HP", or if not rented you have to consider the house as a deemed let out and have to pay tax.

It is advisable not to claim HRA and treat the house property as a self occupied.

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nagendra (ZM) (44 Points)
Replied 09 June 2013

Thanks sir... but why it is not advisable.. As i will be residing in rented house (where i am residing currently) and yes i will be paying tax on INCOME from house property .. Also pls let me know that in addition to HRA exemption if i can claim Home loan interest deduction benefit as well.

Also how much maximum home loan interest amount can be claimed for income tax benefit (loss from HP) per annum for the property given on rent . I am paying Rs 350000 as interest

Also I have 3 properties (two are still under construction , possession expected in this year) in different cities ..Now i would like to claim interest paid in pre possession period as per rule in 5 parts .... so can i claim interest benefit for all the properties simultaneously .. what is the max limit of interest which can be claimed for income tax benefit for all these properties.

details are as under

1st Home : in the same city where i am currently residing on rent , would like to continue on rent and give own peoperty on rent . would like to claim HRA exemption (as i am residing on rent )and interest benefit (home loan) in Income tax. Total interest will be Rs 3.00 lacs approx for this FY and rental income by giving my property on rent would be Rs 108000 for this year

2 nd and 3rd Home : in different city . already paid interests of Rs 4.00 lacs and 1 lac during construction period, now going to get possession this month , will be giving these house on rent for Rs 60000 and 60000 per annum (rs 5000 per month)

Kindly let me know the maximum home loan interest for which i can claim deduction from my income to get TAX benefit.