HRA Exemption and Housing Loan Interest

Tax planning 94 views 3 replies

KRN

4 Points Joined March 2022

Dear Experts

I request your views on the following 2 queries:

HRA Exemption : I lived in rented house for first 3 months only during this FY and shifted to my own house. For calculating HRA exemption, should I consider the basic salary of those 3 months only or for entire year? Note : I received HRA for first 3 months only and no HRA received for balance period due to restructuring.

HOUSING LOAN INTEREST : My flat is jointly owned by my spouse and all along, we have been claiming the housing loan interest exemption equally. Now, due to lower income during this FY for my spouse, can we claim unequally, say, 70%-30%?

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Replies (3)

Eswar Reddy S

CFO- at NHTF

58275 Points Joined August 2012

1. Only 3 months HRA can be claimed..If there is allowance then only exemption can be claimed

2. Housing loan interest depends on the percentage of ownership between co owners.

How much was the value of house as per sale deed and how much paid by each ?

KRN

4 Points Joined March 2022

Thanks Mr. Eswar Reddy.

1. HRA Exemption : My employer paid HRA in the months of Apr, May & Jun and I stayed in rented house. From Jul onwards, NO HRA paid by employer and I am staying in my own house. In this case, how much basic amount should I consider for HRA exemption calculation? 3 months basic only or entire year basic?

2) HOUSING LOAN INTEREST : Myself and my spouse invested 50% each at the time of purchase of flat 4 yrs ago. So far, out of the total interest paid towards housing loan, we have been sharing 50% each. This year, my spouse's income is not attracting income tax. Hence, can I consider entire amount of interest for my tax exemption calculation or about 70 to 75% of the interest paid?