HRA Deduction with Rental Income & Housing Loan

Tax queries 1202 views 2 replies

Husband wife jointly purchased house property on Housing Loan. The property registered jointly and the loan also obtained jointly.   The property is rented out. The assessess are staying in a Rented Apartment in a different place due to the distance from the work place.

1. Husband is claiming HRA excemption from the Comapny as well as 50% of Home Loan Interest.

2. Wife is claiming the 50% Home Loan Interest along with the principal.  She is declaring the Rental Income in her compuation, the net is she is end up not paying any taxes.

 

Whether this is correct.
 

Replies (2)

The exemption u/s.10(13A) is available if the assessee is not staying in his owned house only due to employment reasons.

In my opinion, the contention is correct.

correct = husband can claim hra exemption due to valid reason and also loan interst in prop of ownership

                wife  can claim loan int also in prop.

incorrect= rental income shall be taxable in proportion  of ownnership on house

                    both can claim principal repayment in prop. of ownership   


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