House in greater noida and living on rent in noida

This query is : Resolved

Amit Gupta (Querist)
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16 February 2012 Hi,
I have a house in greater noida on which I have taken home loan. I have taken the possesion of the home. But as, It is far away >40 kms from my office noida. This home is vacant and no rental income.

I am staying in a rented apartment in noida.

queries: can I claim both HRA and Home Loan interest benefits?
in doing so, do I need to show any notional rental income?
and how do one calculate notional rental income

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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16 February 2012 Yes You can claim both of these incentives.

In this case your own house in greater Noida remains unoccupied which shall be deemeed to be treated as self-occupied and Net Annual Value will be treated as Nil if You does not occupy the house because of your business or profession or employement elswhere. In case You have let out your house in Greater noida provisions of let out shall apply accordingly.

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Amit Gupta

Amit Gupta (Querist)
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16 February 2012 is there any rule or consideration that defines what is away from office? like rented house and owned house should not be in same distt. or any minimum distance?

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Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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28 July 2024 Certainly! Here's how you can address your queries related to claiming Home Loan interest benefits and HRA (House Rent Allowance) when you own a house in Greater Noida but live in a rented apartment in Noida:

### **1. Claiming Both HRA and Home Loan Interest Benefits:**

#### **a. Claiming HRA:**

Yes, you can claim HRA and Home Loan interest benefits simultaneously under the following conditions:

- **HRA Claim:**
You can claim HRA if you are living in a rented accommodation and paying rent. This claim is subject to the rent paid, the HRA received from your employer, and the city of residence.

- **Home Loan Interest Deduction:**
You can claim a deduction for the interest paid on the home loan under Section 24(b) of the Income Tax Act. This is available up to ₹2 lakh per annum for a self-occupied property. If the house is vacant, you can still claim the deduction under Section 24(b) as it qualifies as a self-occupied property for the purpose of tax benefits.

#### **b. Notional Rental Income:**

- **Notional Rental Income:**
For a self-occupied property (where you are not earning rental income), there is no requirement to show notional rental income if you are claiming HRA. The Income Tax Act allows you to claim Home Loan interest without showing notional rental income for a self-occupied property.

- **Impact on HRA:**
You do not need to show notional rental income of your owned property to claim HRA. The concept of notional rental income typically applies when you are claiming deductions for a property that is let out. In your case, as the property is vacant, you will not need to account for notional rental income for HRA purposes.

### **2. Distance Considerations:**

#### **a. Distance from Office:**

- **No Specific Distance Rule:**
There is no specific distance rule in the Income Tax Act that defines how far the owned house should be from the rented accommodation or office. The key factor is whether the rented accommodation is genuinely required due to the distance from your office and whether you are incurring rent for the rented place.

- **Reasonable Distance:**
The distance from your office and the practical need for renting a place closer to your workplace can be considered as part of your reasoning. The Income Tax authorities generally look at the reasonableness of the claim based on your employment and the need for the rented accommodation.

### **Conclusion:**

- **HRA Claim:** You can claim HRA for the rented apartment in Noida if you are paying rent and living there.

- **Home Loan Interest Deduction:** You can claim Home Loan interest under Section 24(b) for the house in Greater Noida even if it is vacant.

- **No Need for Notional Rental Income:** For a self-occupied property, you do not need to show notional rental income.

- **No Specific Distance Requirement:** There is no prescribed minimum distance requirement between your rented accommodation and owned property for claiming HRA.

For accurate compliance and personalized advice, it is advisable to consult with a tax professional or chartered accountant. They can provide guidance tailored to your specific situation and ensure that all tax benefits are claimed correctly.