Hra exemption & deduction of home loan interest simultaneous

Tax queries 924 views 2 replies

Piyush Goel

Sr. ERP Finance Consultant

91 Points Joined July 2009

Hello All,

Can i take both benefits i.e. HRA Exemptions & Dedcution of Home Loan Interest simultaneously??

If yes, on what basis?? Please look into below my query.

if both the places i.e. rented house and owned house are in same place/colony but different house number. So, can i avail both things i.e. deduction for interest & HRA expemtions?? Kindly reply

Best Regards,

Piyush Goel

Replies (2)

Guest

the tax benefits for home loan and HRA are two separate entities and have no direct bearing on each other. As long as you are paying rent for an accommodation, you can claim tax benefits on the HRA component of your salary, while also availing tax benefits on your home loan. This could be the case if your own home is rented out or you work from another city etc. However, you need to account for any rental income you receive from the property you own under income from other sources.

Read more: https://www.indiantaxupdates.com/2012/10/16/hra-calculation-and-exemption-limit/

Sataveerappa

Manager

21 Points Joined October 2013

Dear Sir,

I have taken the housing loan and EMI starts from Nov 2013. I will be getting my flat only in the month of April 2014. Till then i will be staying in rented house and for which i will be paying the rent. Shall i claim both HRA and Benfits of Housing Loan.