Claiming hra & home loan principal with interest

This query is : Resolved

BHUVANESHWER PRASAD (Querist)
Follow

31 August 2012 Dear Expert,

I have an home loan running where i dont stay because it is 32km far to my office. i stay in rented home which is 22 km from my office.

i just want to know whether i can claim the HRA & Home loan Principal (Rs. 19,715)and interest(Rs. 1,28,000) all put together.

This new purchased home i have given on rent as well where i am earning 4500 rent so in this case do i need to show this rent recieved as an income also?

Please suggest me in this case. what should i can do? Can i claim both HRA and Home loan (Principal & Interest) both?

Thanks in advance.

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
Follow

01 September 2012 Yes you can claim both,
The tax benefits for home loan and HRA are two separate entities and have no direct bearing on each other. As long as you are paying rent for an accommodation, you can claim tax benefits on the HRA component of your salary,
and claim housing loan interest under income from house property as a deduction and principal amount under 80C.

you need to account for rental income under income from house property.

BHUVANESHWER PRASAD

BHUVANESHWER PRASAD (Querist)
Follow

03 September 2012 Thanks Ravi,

so there is no issue in claiming HRA and Home loan (Principal & Interest) if staying in same city.

As my rented home where i am staying is 22 km from my office and the new house is 33 km from office. and my office in different city.

in this regards please clarify as i heard somewhere that if home is in same city where you are residing (rented)you can not claim HRA if you have house there.

Thanks in advance.

Upgrade to CAclubindia Pro. Subscribe Now!

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
Follow

03 September 2012 The condition of own house should not be in the same city is applicable to 80GG where you are not getting HRA and Claiming The Rent under Chapter VI-A 80GG.
Hence in your case 80GG is not applicable.