HRA as well as two house property loan benift

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Rajen (Querist)
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31 July 2007 Sir, one of my client has two house property one at nasik & onother at mumbai and pay EMI for both the property .And he stay with his mother's house ansd pay rent to his mother, His mumbai houe property is letout. now my Ques. is
1) He wants to claim HRA benifit because he is stay with his mother. Shall he get ?
2) He also wants to claim Hpusing loan Interest & Principal of his Nasik property (because he is working in mumbai ans hpuse property at nasik is to far from working place) shall he get claim ?
3) He also wants to claim his let out property of mumbai (ha pays loan amount as well as interest to bank and he also collect rent from customer. shall he get the benifit (eg. collect rent Rs. 120000/- p.a. and pay EMI Rs. 300000/- p.a.)?

in all three cases a big amount is involved. pl clarify the query with income tax Act. as wll as rules. and also with a caselaw if any.

regards
Rajen

CA Mani

CA Mani (Expert)
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08 August 2007 1. If he wants to claim HRA, He have to get rent receipt.

2. He can claim Sec.80C irrespective of place where house is situated.

Conclusion - You can claim Sec.80C (Principal deduction)

Rajen

Rajen (Querist)
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08 August 2007 Dear Mr Mani
I appriciate with your answer for 1 & 2 ques. but for my 3rd ques I'm not getting any answer. 3rd ques is more importantant for me. Pl revert back at the earliest.
Regards
Rajen Vora
vora.rajen@rediffmail.com
vora.rajen67@yahoo.co.in

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madhusudan

madhusudan (Expert)
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16 August 2007 Dear Friend,
answer to your third question is as follows:
He has received rent of Rs. 1,20,000 so it is charteable under the head House property. As regards the payment of Rs. 3,00,000 as EMI, he has to divide it into two parts i.e interest element and the principal repayment. Now interest amount is deductible u/s. 24(b)irrespective of the amount involved and as regards payment of principal component he can claim deduction u/s.80 C, but subject to the overall limit of Rs. 1,00,000.