HRA Deduction with Rental Income & Housing Loan

V.S. Balasubramanian (QuickBooks Pro Advisor Consultant & Trainer)   (145 Points)

24 June 2011  

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.