Very urgent urg.....can rent free accomodation and repaymen?

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2012 Hi All,

Can employee claim Rent free accomdation and at the same time can claim deduction U\s 80C and inerest U\S 24B i.f self occupied...

CA Kishore Tallam

CA Kishore Tallam (Expert)
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10 April 2012 Yes, on satisfying certain conditions.

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2012 What are they...

My points are:

If employee avaling Rent Free Accomadation then:
1) Will it effect any way on 80C for Housing loan repayment(Prinacipal)
2) Will it effect any way on interest on housing loan whether its 30000 or 150000.

Please updaateme........

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 April 2012 House -1 = Rent Free House
In case an employee has been provided a Rent Free Accommodation by his employer, depending upon the place/city, certain % like 15%/10%/or 7.5% of Salary is included in his salary income as perquisite.

So, the claim results in higher tax liability.
.
House 2= House owned by employee and due to his employment at other place. he has kept
this house vacant :
.
An employee enjoying RFH can claim 80C as well as Section 24(up to Rs 150000) benefits in respect to such house .
.
When Rental income of House 2 is being shown, Actual amount of interest (may be higher than 1.50lac) can be claimed.
.

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2012 Dear Paras,

Thanks for your valuableinputs...

In this regards can you please elabarate:

like what are the exact conditions to fullfill to claim both RFA and 80C and interest on borrowed capital u\s24b......

and
HRA and 80C\24b

Best Regards
Aditya......