HRA - Interest on Housing Loan - Reg

This query is : Resolved

Krishna Murthy (Querist)
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17 December 2007
Sir,
I want to know whether i can claim both HRA and Interest in housing loan in the following case:

I am working in Delhi and paying rent on the house residing in Delhi. I have purchased one house in Mumbai and my parents are staying over there.I pay interest on the loan borrowed to purcahse house at mumbai and i dont receive any rent from the property in Mumbai as my parents are staying over there.

Can i claim both HRA on the house at delhi and interest on loan borrowed on the house in Mumbai.

Raj

Raj (Expert)
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17 December 2007 i my opinion you may be successful in this issue

K V Subba Rao

K V Subba Rao (Expert)
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17 December 2007 Yes. Please visit http://www.apnaloan.com/taxtips/home-loan-india/taxdeductionbenefitsforhlhra.html and study the Home Loan Tax Tip under caption "Simultaneous tax deduction benefits for home loan and HRA" for very exhaustive discussion on the subject

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Krishna Murthy

Krishna Murthy (Querist)
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17 December 2007 Thank You very mcuh sir

CA Praveen Chopra

CA Praveen Chopra (Expert)
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17 December 2007 Dear
You can very well claim both the items simultaneously since HRA is regulated by Rule 2A and Interest on borrowed capital is regulated by section 24(b) and there is no such restrictions in both the section/rule.