Query regarding tax exemptions for home loan

The above mentioned property was let out and benefit was dervied therefrom . Hence according to the sec 23(3) this property shall not be considered as self occupied property. Hence limit of 1.5L is not applicable

Z, thanks for your comments.  I'm a little concerned here:

"Further owing to the fact that house property was let out, HRA exemption can not be availed." - Does that mean that if someone has rented out a property that they own (for which they pay tax for the income generated by the property) and stay in a rented property in the same city, they are not entitled for HRA claims?

SORRY

I mixed up 2 things

For HRA assesse must have incurred  expense of rent, if so then the assesse can claim HRA

That explains.  Thanks much!

My case is same as above but one difference is instead of let-out if my property is kept vacant then...

1. Can I claim tax benefit - i.e. interest without limit showing notional rent...?

2. can I claim HRA for the rented house which I currently stay?

Please enlighten me.....

Thanks,

Padmanabhan P

1)- Do you have more than one residential property?

A property can be deemed to be let out if you have more than one residential house property and then there shall be no limit on interest

In your case IF NO OTHER BENEFIT is derived from the house then it shall be DEEMED TO BE SELF OCCUPIED and the limit will apply

2) For HRA assesse must have incurred  expense of rent, if so then the assesse can claim HRA exemption

Thanks for replying...

I have only one porperty...so in that case as you specified it should be shown as self occupied....

I have the incurred expense of rent as well....but my company rule says that when I declared a propery as self occupied in Bangalore...i can't claim HRA benefit in the same city (i.e. Bangalore)... :-(

Thanks,

Padmanabhan P

Am quoting sec 10(13)(A) . Its no where written that the exemption can't be availed in same city

(13A)  Any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee, to such extent as may be prescribed having regard to the area or place in which such accommodation is situate and other relevant considerations;

Explanation : For the removal of doubts, it is hereby declared that nothing contained in this clause shall apply in a case where - (a) The residential accommodation occupied by the assessee is owned by him; or

(b) The assessee has not actually incurred expenditure on payment of rent (by whatever name called) in respect of the residential accommodation occupied by him

Therefore HRA exemption can be availed to the extent cacluclated by the criteria mentioned.