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Exemption on HRA & Interest on Housing loan

This query is : Resolved 

24 March 2009 An employee X has taken a loan on house and paid interest and principal Rs.3.50 Lacs during the year.

He has let out the house and received rental income of Rs.1.80 during the year.

He has take another house within the city at a very high rent of Rs.20-25,000/- per month and claims HRA benefit.

He claims both HRA and also -ve income on the house property.

What is the exemption we can allow?

Pl clarify

24 March 2009 There is no such provision in income tax Act which prohibits an assessee to claim deduction u/s 10(13A) and u/s 24 simultaneously,
so you can calim it provided consition of respective sections are satisfies.


regards,,,,,,,,,,,,,

24 March 2009 Yes, you can. Provided you are satisfying the condition u/s 10(13A) for exemption of HRA.


24 March 2009 HRA will be allowed under Sec.10(13) of IT Act where as Interest under the head Income from House Property will be allowed U/s.24 of the IT Act.

There is no restriction on HRA & Interest to claim together.

You can claim both interest as well as HRA if u satisfy the conditions under the provision.



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