HRA exemption & tax rebate for repayment of home loan

Q1)If Mr X is paying home loan EMI can he claim  HRA exemption & tax rebate as well.

Q2) What is the maximum tax rebate one can avail of on repayment of home loan EMI.

Replies (1)

Dear Yogita,

1) Both HRA exemption & Tax benefits on account of home loan repayment can be claimed simultaneously. 

2) Maxium amount that can be claimed in case of repayment of loan {make sure construction of house has been completed or posession has been received} -

Principal portion of EMI - Maximum Rs. 1 Lac u/s 80C

Interest portion of EMI - Max. Rs. 1.50 lacs if House is self occupied

                                         - Without any limit if house is let out or deemed to be let out

{in case more then one house is self occupied then only 1 house can be claimed as "self occupied" & rest will be treated as "deemed let out"}

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