Hra and home loan

This query is : Resolved

Nitesh Kumar Sharma (Querist)
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28 December 2013 Dear Experts, Pls Express your views on this case:
Mr. Ram have 2 houses H1 and H2 in two different cities.
H1 (In Wife's Name): User Mr.Ram & his wife;
H2 (In Joint Name of Ram+wife+son): User Ram's Major Son.
Mr. Ram receives HRA in salary. H2 is financed by a home loan by Mr. Ram.

Can both HRA and Home Loan deductions (24B & 80C) be claimed.

CA Sanjeev Kumar

CA Sanjeev Kumar (Expert)
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28 December 2013 There is no connection in sec 24B &sec 80C, and therefore you can claim both the benefit..

@VaibhavJ

@VaibhavJ (Expert)
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28 December 2013 HI

Yes, he can.

Thanks

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Nitesh Kumar Sharma

Nitesh Kumar Sharma (Querist)
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29 December 2013 Hi... My basic question is that whether both HRA deduction and Home loan repayment deduction can be claimed simultaneously ?

CA Pallav Singhania

CA Pallav Singhania (Expert)
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29 December 2013 I guess Yes,

Both the deduction can be claimed if you satisfy any of the following conditions:

1.You should own a house in a city other than your work place.

2.You own a house in the same city but reside in a rented accommodation for a genuine reason.

You can claim deduction U/s 80C for housing loan principal repayment and u/s 24 for interest payment of loan taken for your own house.

HRA exempt under section 10(13A) is monetary perquisite which is paid or allowed by the employer for providing accommodation to employee. HRA deduction can be claimed for payment of rent for accommodation.

If you are receiving HRA from your employer and reside in your own house, then you can claim deduction in respect of home loan only. HRA deduction is not available to you.

@VaibhavJ

@VaibhavJ (Expert)
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29 December 2013 Hi

You can pay HRA as long as you are staying in rented house and you are paying rent to land lord.

Apart from this if you are owning a residential house which may be occupied by your family member or is vacant or let out and it is registered in your name against which you arts paying interest on loan borrowed for purchase or construction of house. Then you can also claim deduction u/s 24 (b) .

Thanks