Claim both house rent allowance and tax exemption on housing loan
If you are a salaried individual enjoying House Rent Allowances (HRA) from your employer and also own a residential house, then you can have an option to avail the deduction of both.
(a) HRA and
(b) Housing Loan
repayment (section 80C) & interest deduction (section 24).
The Income Tax Act,
1961 (“the Act”) treats HRA and home loan deductions under separate sections
independently. The two are not interconnected to each other.
HRA is dealt with
in section 10(13A) of the act while home loans are entitled for tax benefits
u/s 80C for principle repayment and u/s 24 for interest payment.
Download Automated Income Tax Arrears Relief Calculator with Form 10E U/s 89(1) fromF.Y.2000-01 to F.Y.2017-18 ( Amended Version)
When you can claim both the deductions?
Both the deduction
can be claimed if you satisfy any of the following conditions:
1) You should own a
house in a city other than your work place.
2) You own a house in the same city but reside in a rented accommodation for a genuine reason.
3) You can claim deduction U/s 80C for housing loan principal repayment and u/s 24 for interest payment of loan taken for your own house.
2) You own a house in the same city but reside in a rented accommodation for a genuine reason.
3) You can claim deduction U/s 80C for housing loan principal repayment and u/s 24 for interest payment of loan taken for your own house.
HRA exempt under
section 10(13A) is monetary perquisite which is paid or allowed by the employer
for providing accommodation to employee. HRA deduction can be claimed for
payment of rent for accommodation.
If you are
receiving HRA from your employer and reside in your own house, then you can
claim deduction in respect of home loan only. HRA deduction is not available to
you.
