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HRA and interest on house property

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Deepshikha Rawat

7 Points Posted on 19 June 2021

Assessee has claimed hra, and interest paid on one house property (let out)

Now He is willing to purchase second house property

Whether he can claim it as self occupied

(which is fulfilling criteria of exception to self occupied:ie as the assessee is not getting any monetary benefit from it and the possession of the house is not received)

and get the interest deduction upto 2,00,000/- in addition to above (first house and Hra)

please help
Thank you ☺️

Replies (4)

Quick Summary

This discussion explores whether an individual can claim House Rent Allowance (HRA) and also claim interest deduction on a self-occupied house property. The consensus is that while you can claim interest deduction up to £200,000 on a second property if it meets the criteria for being treated as self-occupied (e.g., no monetary benefit received, possession not taken), you cannot claim HRA for that same property. The HRA benefit would apply to a rented property, while the interest deduction applies to a property owned and occupied by you.