HRA Exemption and Housing Loan Interest

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4 Points Posted on 29 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%?

Request the views from experts for tax planning

 

 

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On 29 March 2022 at 16:52 Report
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Quick Summary
This discussion addresses two key tax queries. Firstly, regarding HRA exemption, it clarifies that exemption is calculated based on the basic salary for the months you actually resided in a rented property and received HRA. Secondly, for housing loan interest, the exemption is generally tied to the ownership percentage. While equal sharing has been the norm, the experts suggest that unequal claiming is possible, but it should align with the actual ownership stake as per the sale deed and contributions made.

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CFO- at NHTF
58280 Points Posted on 29 March 2022
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 ?
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On 29 March 2022 at 18:51
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4 Points Posted on 29 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?

 

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On 29 March 2022 at 20:09
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CFO- at NHTF
58280 Points Posted on 29 March 2022
1. HRA should be calculated per month . Calculate per month basic for 3 months only..

2. You are eligible for only 50% deduction on interest
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On 29 March 2022 at 22:09

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