Income tax on hra and housing loan

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Sumitha K (Querist)
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14 February 2012 Hi Experts,

I will be grateful to you if you can clarify my below doubt ASAP.

1. Suppose I stay in rented house and pay rent from April 2011. I purchase or construct a house say in Sep 2011 in same city. Can I claim housing loan benefit as well as exemption u/s 10(13) i.e rent since I am paying both.
Pls clarify.

Thanks
Sumitha

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 February 2012 The exemption of HRA is covered under section 10 (13A)of the Income tax Act,1961. Conditions for allowing the exemption of HRA are:-
i) rent must actually be paid by the assessee for the rented premises which he/she occupies
ii) the rented premises must not be owned by him/her.
As long as the rented premises are not owned by the assessee, the exemption of HRA will be available up to the limits specified in rule 2A of the Income tax Rules,1962.
There is no mention here about any effect on the exemption because of ownership of any other property.
In view of the above, you are eligible to claim both.

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