I have doubt regarding one of my employee is claming HRA as well as Housing loan Repayment in 80 C it is allowable.
pls let me know.
Jaya prakash (Accounts & Finance Executive) (45 Points)
26 November 2012I have doubt regarding one of my employee is claming HRA as well as Housing loan Repayment in 80 C it is allowable.
pls let me know.
ANJALI NEGI
(Chartered Accountant)
(1263 Points)
Replied 26 November 2012
Both the deduction can be claimed if you satisfy any of the following conditions: You should own a house in a city other than your work place. You own a house in the same city but reside in a rented accommodation for a genuine reason. You can claim deduction U/s 80C for housing loan principal repayment and u/s 24 for interest payment of loan taken for your own house. HRA exempt under section 10(13A) is monetary perquisite which is paid or allowed by the employer for providing accommodation to employee. HRA deduction can be claimed for payment of rent for accommodation. If you are receiving HRA from your employer and reside in your own house, then you can claim deduction in respect of home loan only. HRA deduction is not available to you.
Ranganathan K
(Manager-Accounts & Audit)
(329 Points)
Replied 26 November 2012
As per my knowledge, there is no restriction to claim HRA & HL interest even when the purchased flat is in the same city.
Because, for claiming HRA, the requirement is only the "Proof of rent paid". Also, for claiming HL interest (Loss on House property), the requirement is the "Proof of interest paid on HL".
The provisions of the Act have not given any special restriction like the owned property should not be in same city.
There are relevant case laws available in this favour.
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