It query for home loan + hra

Hi All,

I have a query regarding Income Tax exemption for Home Loan and HRA.

I have bought an apartment in Feb 2013 and had been living in that apartment from Mar 2013. I purchased that apartment by availing a Home loan. Last year I claimed the interest (upto a maximum of Rs. 1,50,000/-) I paid towards the Home loan under section 24B. Currently me, my wife, my brother and my parents are living together in the same apartment. But this year, I am planning to rent another house nearby my office for me and my wife. My parents are going to stay in our apartment, since my brother goes to a college nearby and I do not want him to stay in a hostel.

My questions are :

Since I am going to pay rent for the new house I am planning to avail near my office,

(1) Can I claim for HRA for the rent I am going to pay for the new rented house?

(2) Also along with the HRA can I claim for the interest on the housing loan I am paying for the apartment my parents (my dependents) are staying? [I am not renting it - no income is received from this property]

Any help is appreciated. Thanks in advance.

Regards,

MKU

In such case you can claim both HRA and benefits on Home Loans.

Under section 23(2) of Income Tax Act says, Where the property consists of a house or part of a house which;

Is in the occupation of the owner for the purposes of his/her own residence; or
Cannot actually be occupied by the owner by reason of the fact that owing to his/her employment, business or profession carried on at any other place, he/she has to reside at that other place in a building not belonging to him/her,

In such case Annual Value of Self Occupied Property (Bangalore property as per example) will be “NIL”. Standard deduction of 30% will not be allowed here as the annual value itself is nil, however you will be eligible to claim deduction on account of interest repayment on home loan for the self-occupied house property. You can also claim deduction of principal repayments u/s 80C to the max limit of Rs. 1,00,000.

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MKU

Varma

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