'A' is employee who is drawing hra of rs 5000 pm which is exempt under section 10 if take house on rent . he has also a house against which he has taken loan and paying a interest of rs 3 lakh per annum. my query is
1. can he claim hra deduction and loss from property for interst
simultaneously.
2. if yes can it be used as tax planning tool as interst on self occupied house is restricted to 2 lakhs while for rental house there is no limit. it is assumed that the house can fetch only 5000 pm as rent while let out. if 'A' show it rent out instead of self occupa[ied.
pls do not guess. reply only if u r sure and cite the relevant section etc
CAclubindia
