Dear Professional Coleagues i have a query that is

one of my client is having salary income and getting HRA from the employer.he is living in bangalore but he is having his own house at Cochin.

Cochin house is constructed with borrowed funds and he is claiming self occupied status and loss on house property also.

my question is:   1. whether he can claim self occupied house property loss and set off it from salary income.

2. if he does as in (1) above, then whether he can produce Rent receipt and get hra exemption.

3. since he is living in a place other than the place where his own house property is situated, can he claim both i.e can rent receipt and get hra exempted and also claim loss from house property showing cochin property as self occupied?

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CA in Practice

Yes, your client claim both (HRA & interest on hsg loan) provided the rented accommodation is reasonably away from the clients house property. And the rented accommodation is occupied due to employment.

Now in your case
1. rented accommodation is occupied due to employment purpose, then you can claim the HRA
2. House property should be reasonably away from rented accommodation. Now reasonably away means there should be atleast 50 KM distance or located in the different municipal limits.

Hence as per above he can claim both HRA and interest on housing loan.

Tax Consultant

Mr.Aditya Maheswari

Please let me know is there in circular issued by CBDT clarifying the distance at 50 KM. I would like to bring to the notice of all the professional people a pecular fact.

Yanam is a municipality situated in the Union Territory of Pondichery


Neelapalli is a village in the state of Andhra Pradesh

the distance between these two places is less than a half KM.

There is a bridge in between these two places.  The approximate time that may take to reach from one place to the other place is less than 10 minutes.

In the above situation can an assessee as explained in the querry claim both the deductions?

Best Wishes




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