liability

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kumar

Executive

99 Points Posted on 14 July 2009

One of our employees claiming both the HRA and Housing loan interest. He declares that the income on the house property is Rs.9600/- PA and also he is claiming exemption Housing loan interest of Rs.1,00,000/- PA, HRA Rs.118488/-PA, Is it acceptable? If the company takes this for IT computation for this employee, what is the liability of company in this case?

Replies (4)

Guest

If state is different with each other, thn in that case he can claim both.,

Like, Mr. A living in Delhi on rent @ 6500 P.M and have his own house (which is on loan) at Haryana. So in this case, he can claim both otherwise he can claim only one of them.

Abhishek Mohta

ACON

508 Points Posted on 14 July 2009

For clarification its not the state which should be different but the place of residing should be different.

Gokul

Asst. Manager Costing

344 Points Posted on 15 July 2009

Originally posted by :Abhishek Mohta
"	For clarification its not the state which should be different but the place of residing should be different.	"

Abhishek's Clarification is right

Guest

Hi Kumar,

There is nothing mentioned in sec 24(b) along with explanation , which forbids employee receving HRA from claming interest deduction under house property income. So, employee can claim it under house property. But to get HRA 10(13A) he shall not get if he/she stays in her own residence or where no rent is paid by him.

Incase residential place is different from place of employment and pays rent in the place of employment then he/she can claim both.