DISHA (Article) (92 Points)
01 February 2016If 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"
Shivani Mittal
(Practice)
(425 Points)
Replied 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)
Replied 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
CAclubindia
