Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

HRA and intt on housing loan

Rajat Sharma (Accountant ) (564 Points)

02 April 2022

Sir can a employee living in sorrounding area not more than 2km claim House rent allowance and intt paid on borrowed as housing loan.Thanks

Reply
Follow
Share

9 Replies

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 02 April 2022

If there is a proof then both can be claimed..You may have to declare the rent for house

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Rajat Sharma (Accountant ) (564 Points)
Replied 02 April 2022

But sir rent paid in cash

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 02 April 2022

How much is the rent per month ?

Rajat Sharma (Accountant ) (564 Points)
Replied 02 April 2022

Rs 12500- per month Rs 150000/-Annual

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 02 April 2022

This can give a trouble from IT Dept .
Make a rental agreement and pay rent by electronic modes from now .Your risk may get reduced

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

sabyasachi mukherjee (27797 Points)
Replied 02 April 2022

House rent allowance can be claimed only if the assesse is living in a rented accomodation. Pay by Account Payee cheque , receipt has to be provided by landlord.

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 02 April 2022

Query is about housing loan interest and HRA both Deductions

1 Like

Vasant (Accountant) (75 Points)
Replied 06 April 2022

you can claim a deduction for HRA as well as interest since your workplace is in a different city, or that your office is too far from your house. But it should be noted that sufficient explanations need to be provided to the employer or the Income Tax authority in case there is a scrutiny of the details provided.