HRA and Home loan Interest benefits

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Dear Friends,

I am residing in mumbai and taken a flat on rent for my residential purpose on april 2010 and this rented flat is 5 km from my office. in the month of December 2010 I bought a flat in Thane which is 20 km away from my office . this new flat I have given on rent on the date of possession.

now my company is not allowing me HRA benefit because I have my on flat at Thane. Accounts department told me that I can take only one benefit either HRA or Interest benefit of Rs. 150000/-

But i would like to take both benefits because I am ready to show said flat on rent in my tax return.

My questing is that, Can I get both benefits under the Income Tax Act or not. 

I request you please give reference with your comments.

 

Regards

Abhishek

Replies (3)

HRA -exemption u/s- 10(13A) is denied where an assessee lives in his own house or not pay rent or pays rent which does not exceed 10% of salary.

in ur case u can claim deduction u/s-10(13A):- bcause u did not live in ur house & pay rent for the house situated far 5km from ur office.

u should show ur rental income from house situated at thane under the head"income from house propert", and claim deduction u/s- 24, interest paid on capital borrowed, rs.1,50,000 is applicable in case of a self occupied assesse's but u can gave it on rent so, full amount interest can claim as a deduction u/s-24.

siri.

to avail both u have to show the both occupied, options available 

a) show the owned house occupied by your parents, rent nil. 

b) show the owned house occupied by tenants , rent received, 

 

c) you are living in rented house, produce documentary evidence of bonafide living proof. 

SIR I HAVE MY OWN HOUSE IN DOMBIVLI IT IS ON LOAN MY MOTHER IS STYING THERE

CAN I SHOW THAT I AM STYING IN KURLA MUMBAI WITH MY SISTER HOUSE AND I AM PAYING RENT TO HER BECAUSE MY OFFICE IS HOUSED AT BANDRA CAN I TAKE BENEFIT OF HRA Rs. 2000 PER MONTH TO GIVE RENT TO MY SISTER

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