Deduction for HRA and Interest on housing loan

This query is : Resolved

Puneet (Querist)
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19 June 2008 Suppose I am currently staying in a rented house. Now, I opt for buying a house (mainly from the investment perspective)by availing a home loan, and put it on rent to a third party. Am i eligible to claim both, ie.:
a. The house rent that I am paying and
b. The interest that I am paying on the home loan which will be subsequently be adjusted against the rental income when I compute Income from house property.

Is there any other mode to claim both interest and house rent as deduction.

Please advise!

PC-www.bharadwajinstitute.com

PC-www.bharadwajinstitute.com (Expert)
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19 June 2008 Both not possible...

Shekar

Shekar (Expert)
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19 June 2008 Hi Puneet..

U can't claim HRA...

U can claim Deduction u/s 80C on Repayment of Housing loan(Only Principal)upto a maximum limit of Rs.100000 P.a

And also U can Deduction u/s 24 for Interest on Housing loan (Under head " Income from house Property)

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SUNIL RATHORE

SUNIL RATHORE (Expert)
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20 June 2008 Hi Puneet, u can claim both the deductions if you are currently not residing in same localty in which u have the your own house.

Puneet

Puneet (Querist)
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20 June 2008 hi sunil...how will I convince my company given that my own house will be closer to my office that the rented one...

CA. Vineet Grover

CA. Vineet Grover (Expert)
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20 June 2008 Hi Puneet,

You have to give a delaration to the company together with the all the supportings including the rent slips and the conveyance deed of your property.

If both the rented property and owned property are in different cities / towns / states then you may claim HRA & interest on Home Loan as well.

Rgds/
VIneet