HRA (House Rrent Allowance) & Interest on Housing Loan FAQ

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Sunil (Owner) (27 Points)
Replied 06 March 2015

Hi Vaibhav,

Should it be shown as self-occupied or Vacant? I want to make sure I claim full interest benefits. Pls guide.

Priya (Manager) (21 Points)
Replied 11 June 2015

I am a working lady. I stay in the house owned by my husband. I sign a annual rent agreement with him and claim HRA tax exemption by producing the rent receipts.

We have purchased a new house in the same city about 2 Kms from our present house, in joint name taking a joint loan from the bank. I have following questions :

1. Can both of us claim or either of us claim exemption under home loan interest paid on home loan if the house is vacant?

2. Do we need to show some income from the new house to claim interest exemption. If notional income to be shown what will be minimum amount?

3. Can I continue to get HRA rebate that I am currently getting staying in my husband's house and also claim interest exemption from new house

Thanks

-Priya

Learner (MBA) (1 Points)
Replied 03 November 2015

Dear Vaibhavi, All

Thank you very much for the useful post.

I am in a tricky situation. I have taken a home loan to buy an apartment in which I am the co-owner with my mother. She is not the co-borrower. She doesnot live with me in the same apartment so can I pay rent to her and claim HRA exemption.

I have rented out one room in the same apartment so can I claim 100% interest exemption on home loan vide sec 14 again income from property

Please advise

sonu (Manager) (22 Points)
Replied 28 January 2016

Hello Vaibhav,

Please give your opinions /experts/owner-of-house-can-get-hra-exemption-2258374.asp

Vasudev (Project Manager) (32 Points)
Replied 10 January 2017

Hi,

That is a good post, I would like to know what shall I do? in my situation (follows).

1. I own a house and live in the same Area in Chennai in rented house(couple of streets away), since my house is not sufficiently spaced me (parents, 2 kids).

2. My Employer says it is not allowed to claim both HRA and housing loan if in same city.

Q1 : Can I claim HRA while filing IT Return this year?

Q2 : Own house receiving rent for 6 months now. In previous 1.5 years, my house was vacant(no one wanted to rent it for about 1 years, was self occupied for dumping items not in use), and I was paying rent on a rented house. but not claimed HRA exemption. Part of the House was rented to a person, did not rent and was moved out after deducting due rent (5 month rented), I usually pay rent by cheque or by NEFT. (Rent received only cash, only lease agreement available as proof for renting out). Can I revise my returns for previous years that would initiate some IT refunds?

Refund May be around Rs.5k or 6k for previous 2 years total as my taxable income for previous was less.