HRA exemption

Tax queries 907 views 2 replies

Ajay

CA Student

79 Points Posted on 24 July 2008

Dear Sir,

Pl solve the following cases and also provide the backing(if any) for ur answer :

Case1: a person is staying on rent in Surat and he is getting HRA . He is also repaying the housing loan principal and interest for the house which are in Vorodara and which is occupied by his family.

whether he can claim HRA exemption and take benefit of principal in 80C and interest in House Loss head both or he can claim one of them?

Case2: If the house loan is for the same city i.e. Surat house but possession will be in Oct 09.

Then what?

Case 3: whether the Employer has to take only Rent Receipt from Employee or Rent agreement Also for giving him HRA exemption in Form 16

Replies (2)

Shekar

CA & LCS

1109 Points Posted on 24 July 2008

Hi..

If an employee has own house..but stays in rented house only becuase of Employment in other city then he can claim HRA as well as Interest & principal amount on Housing loan..

If the loan is taken for same city and not claiming 80C deduction for repayment of housing loan as he has not taken posession..he can still claim HRA...

But posession should not be delayed only becuase to get HRA benefit..

And regarding rent reciepts & agreement it depends on Employer policy..

Normally Rent reciepts are enough..