HRA and Interest on Housing Loan (self occupied)

This query is : Resolved

v.v.ganesh

v.v.ganesh (Querist)
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03 March 2008 Hi
Can any one suggest good reason to not to allow the following claim:

An employees claims interest on Housing loan (self occuped)but he does not reside there [nor earn any rent from there] and also claims HRA in the same town where his house property is located.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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03 March 2008 u/s 10(13A) Exemption is not available to
an assesse who lives in his house,or in a house,or in a house for which he does not pay any rent
both deduction are not available to you if you reside another city then you will claimed both deductions

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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04 March 2008 IF YOU ARE CLAIMING HRA IT MEANS THAT YOU DO NOT OWN AN HOUSE.IF YOU CLAIM INTEREST ON LOAN IT MEANS THAT YOU OWN THE HOUSE FOR WHICH YOU ARE CLAIMING INTEREST AND THAN THEW QUESTION OF CLAIMING HRA DOES NOT ARISE

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CA Pattanayak

CA Pattanayak (Expert)
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04 March 2008 Hi Ganesh,

you can do the same but you should have a valid reason for not staying at your own house.

One example may be the distance between your employment and your residence.

Both Interest and HRA can be claimed.