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Tax deduction on home loan & hra

Tax planning 512 views 1 replies

Avi

Associate

24 Points Joined December 2010

Hey Guys,

In the last year I purchased a property by taking a home loan. I haven't moved into the new house as it is under renovation and continue to stay in my rented apartment.

Now, I wanted to know if there is a provision where I can claim deduction on interest paid for the home loan and on House Rent Allowance?

Best Regards,

Avinash

Replies (1)

Guest

The tax benefits for home loan and HRA are two separate entities and have no direct bearing on each other. As long as you are paying rent for an accommodation, you can claim tax benefits on the HRA component of your salary, while also availing tax benefits on your home loan. This could be the case if your own home is rented out or you work from another city etc. However, you need to account for any rental income you receive from the property you own under income from other sources.

Read more: https://www.indiantaxupdates.com/2012/10/16/hra-calculation-and-exemption-limit/