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Hra and vacant house property

Tax queries 401 views 3 replies

DISHA

Article

92 Points Posted on 01 February 2016

If X being empoyed in Indore and in receipt of HRA , while he has another house in the state of Uttar Pradesh and being vaccant, also he had taken loan of that Uttar Pradesh House.

While filing Income Tax Return, can Mr X, avail the exemption under Income from House Salary as well Under Head Income from House Propert-"Interest on Loan"

Replies (3)

Shivani Mittal

Practice

425 Points Posted on 01 February 2016

Hi Disha,

HRA can be claimed from salary.

Interest on housing loan can be claimed u/s 24(b) subject to a max of Rs. 2,00,000/- (since FY 15-16 onwards; before that it was Rs. 1,50,000/-) as per first and second proviso to Sec 24(b)

Regards

CA Shivani Mittal

Vishal Goel

Chartered Accountant

1693 Points Posted on 01 February 2016

Hello,

Agree with Shimi

If you are living on rent and also servicing a home loan, you can take advantage of claiming tax exemption for both house rent allowance (HRA) and repayment of home loan.

HRA exemption towards rent payment

Deduction on home loan interest as per Section 24

Principal Repayment under Section 80C