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Paying Rent and Housing loan on same city

amit (finance professional) (50 Points)

31 December 2008  

 

Hi all,

Please clear one more doubt that belongs to my brother in law.

He is paying housing loan interest as well as rent in the same city, mumbai. He has bough the flat which is nearly 35 kms from his work location, this forces him to live in rented house near his office.

In this situtaion, is it possible that he should get the benefits of both HRA and Housing loan interest.

Thank you.

Amit.

 


 8 Replies

Shudhanshu Agrawal (Business) (2570 Points)
Replied 31 December 2008

Yeah he can avail the benefit of Housing Loan Interest (Section 24B), Principle amount in Section 80C and Rent exemption under Section 10(13A)

amit (finance professional) (50 Points)
Replied 31 December 2008

 

Hi Shudhanshu,

But the city is mumbai itself.

Can he claims HRA and Housing loan in same city.
 

somya (ca ) (172 Points)
Replied 31 December 2008

No sir, ur brother in law cannot claim HRA and House Loan in the same city cuz acc to income tax HRA can be claimed only if the assessee has no house property in that same city.

Mk (36 Points)
Replied 31 December 2008

 Somya, is right. You can't claim HRA if you have own house in same city.

Pavan Jain S (Chartered Accountant) (1575 Points)
Replied 31 December 2008

It is true that section 10(13A) does not allow exemption if a HP is situated in the same city. The intention behind such provision is that the assessee might obtain undue benefit by residing  in the house and at the same time claiming exemption.

In the present case, since the HP is at a distance of 35kms from the work place, the assessee can argue his eligibility to exemption u/s 10(13A) on the ground that it is not practicable for him to reside in the house property owned by him.

Shantanu (Manager) (25 Points)
Replied 21 July 2010

Hi,

i am residing in the same city on rental accomodation where my owned house is let-out. my own house is very small and due to family size i cannot it for accomodation. Currently i am claiming HRA deduction u/s 10(13A) , Principle deduction u/s 80C (for own house) along with interest payment (for own house) as negative income in Income under Housing property. Please let me know where to show Rent received on let out property also, is interest payment on this property will be restricted to Rs 1,50,000 as i am residing in the same city? reading from the discussion above, "assessee might obtain undue benefit by residing  in the house and at the same time claiming exemption." it seems i have to restrict interest deduction to Rs.1,50,000

For time being i have considered rent income under house property and took 30% SD, however to be on conservative side restricted my interest deduction to the tune of Rs. 1,50,000. Is this the correct treatment 

Shudhanshu Agrawal (Business) (2570 Points)
Replied 21 July 2010

pls follow the this article for the clarification of doubts

/articles/hra-housing-loan-interest-deduction-simultaneously-5955.asp

kamlesh (MR) (2 Points)
Replied 19 February 2019

Hi all, 
Please help me clear my doubt. I am paying housing loan interest as well as rent in the same city, Mumbai. I has bough the flat which is nearly 31 kms from my work location and travelling take 2 hrs due to traffic, this forces him to live in rented house near his office. In this situation, can i get the benefits of both HRA and Housing loan interest. 


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