Hra exepmtion on rent if you have own home in same city?

yes you can but deduction u/s 80GG will not be allowed

hello ashish,

for claiming rent paid deduction u/s 80gg.

conditions:

1) the asssesse should not be in receipt of hose rent allowances

2) the assessee, his spouse.or minor child should not own any residential accommondation at that place.

3) no claim for self occupied property should be made in respect of any accomondation.

conclusion: no exemption can be claimed u/s 80gg in our case in respect of rent paid.

Some confusion.

My Company pays me a Fixed HRA

can I Take  exemption under under section 10(13A) which is as follow :

The amount of HRA exempted under section 10(13A) read with rule 2A is least of the following.

    HRA received.
    House rent paid in excess of 10% of salary
    50 % of salary if rented house is situated in Bombay,Madras,Culcutta,Delhi in any other city 40 % of salary

I own a Residence in same city but I stay in Rent.

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.

Hello Ranganathan,

I have a query please clarify.

The provisions of the Act have not given any special restriction like the owned property should not be in same city.
 

If the property is registered in 'ee name and he is staying in rented accomodation in the same city ,as u said he can claim HRA exemption.

can u please clarify me, if he can take the benifit of Self occupied property.....
 

If actual Rent Receipts are NOT available but Rent aggrement is in place and all Rent Paid is Via NEFT (so statements available from Bank) ,is that sufficient as "Proof of rent paid" ? (From both employer side and employee side ,also from IT department point of view)

Originally posted by : CA.Varalakshmi.M
	Hello Ranganathan, I have a query please clarify. The provisions of the Act have not given any special restriction like the owned property should not be in same city.   If the property is registered in 'ee name and he is staying in rented accomodation in the same city ,as u said he can claim HRA exemption. can u please clarify me, if he can take the benifit of Self occupied property.....

First, if the employee is staying in Self occupied property, the question of paying rent to a rented accomadation not arise.

Secondly, the employee can get the benefit of HRA and HL interest  when he has given his owned property to his parents or brothers for stay at free of rent (treated as "self occupied"). Provided, he must stay in a rented accomodation and pay rent for that accomodation.

Hope this makes clear.

The Condition is You Must Stay at Rented House and Must Pay Rent.

Both are Fulfilled.

Now, You Have Owned House and If Proper Reason is Given Why You are Not Staying in Your Own House say Too Far from office) or ant other reasonable, then it can be claimed.

by NEFT Transaction & Show Rent Slip if Asked,

Hi,

To claim HRA Exemption following point/condition to be satisfied.

• Persons has a salary income and Getting House rent allowance
• person has actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by him.
• The residential accommodation occupied by the assessee should not be owned by him.

In your case you full fill all the above condition ,means have a salary income ,getting hra ,paying rent and residing in Rented house.so you are eligible to claim HRA exemption irrespective of your house loan interest claim.

House loan Interest claim.

while calculating income from house property first annual value of house is to be determined.

1. House is let out (value will be according to Rent received)
2. House is self occupied by the owner for own residence. (annual value will be nil)
3. house cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him(annual value will be nil)

in situation two and three value of house annual will not be nil if

1. the house or part of the house is actually let during the whole or any part of the previous year; or
2. any other benefit therefrom is derived by the owner.

more over if asssessee has more than one house which full fill condition two or three above than he can take this benefit of annual value as nil ,only on one house at his option.means Income tax act permits that a person can have more than one self occupied house but he can avail benefit only for one house and other houses will be deemed to be let out.

now in your case you are living in rented house so you are satisfying condition of Hra so you can claim hra exemption.

In case of your own house ,the house is self occupied by you ,it doesn't matter if you are going to house at weekend or monthly and your parents are living in your own house,it is covered under definition of self occupied under income tax act.As I have clarified above In income tax act self occupied definition is not the same as we generally taken and as per act person can have more than one house as self occupied ,and as per income tax self occupied means

• house is not let out for whole or part the previous year
• no any other benefit therefrom is derived by the owner

so you can claim house loan interest.

but i think you are covering yourself in condition three above i.e
"house cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him"

and want to clarify whether this condition is applicable in same city or not.Though in my opinion your house is self occupied as I have clarified above yet for your clarification in above condition also there is no condition that your own house can not be in same city.At any other place does not mean any other city it can be in same city ,but there should be nexus between non occupation of your house and your employment,business or profession .

In case , you fail to prove that the non occupation of house was not on account of employment but something else the A.O will assess the income from house property in accordance with the provision contained in section 23(1) of the I T Act. But he will allow the deduction for interest u/s 24 of the I T Act. Remember in that case , interest can not be limited to Rs 1,50,000 but any amount which is certified to be paid or payable.

Originally posted by : Ravi Kumar Mahaur
	yes you can but deduction u/s 80GG will not be allowed

Deductions u/s 80GG can ot be claimed if you are getting HRA in your salary.

Is it necessary to have a receipt of rent to claim HRA exemption.

Originally posted by : Ramratan sharma
	Is it necessary to have a receipt of rent to claim HRA exemption.

If Ask by AO, Then You Must Present the Same.

Or You Have to Prove Showing Banking Transaction.