Case where both housing loan benefit and hra can be claimed

This query is : Resolved

RAHUL YADAV (Querist)
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25 February 2013 Hi

The new home purchased in Delhi ( Rohini ) is on rent and earning 5500 pm . However I am living with my family on rent in the same city ( Vikas Puri ) which is nearer to my office. Please note as per the salary slip I am receiving HRA.

Am I eligible to claim both Housing Loan benefit as well as HRA ? My taxation deptt says that if both properties are in the same city , then both benefit i snot applicable . Kindly clarify citing CBDT circular references .

Thanks

Rahul Yadav
9868240662

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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25 February 2013 It is necessary for granting the exemption under section 10(13A) that the employee should have actually incurred the expenditure on rent.

As long as you are paying rent and offering rent as income from house property,

You can take benefit of home loan and HRA exemption.

RAHUL YADAV

RAHUL YADAV (Querist)
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25 February 2013 Thanks Suraj .

What about the same city clause? My taxation cell is denying the exemption .
Is there any documentary evidence to support the applicability of both .
Pls relp.......rahul

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CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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25 February 2013 Here is one detailed article on this..will share circular if i get one.

http://www.moneycontrol.com/news/tax/to-claim-or-not-to-claim-the-hrahome-loan-dilemma_665932.html