Interest on Home loan and HRA

This query is : Resolved

Murthy (Querist)
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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

ICSI ICAI ICWAI

ICSI ICAI ICWAI (Expert)
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24 March 2009 HRA condition is that
The person should not own the house

Omkar

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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25 March 2009 benefit allowed

1. Deduction in respect of interest on loan u/s 24(b) from income from house property*.
2. deduction u/s 80 C for repayment of principal amount of loan from GTI*
3. exemption u/s 10(13A) and rule 2A for rent paid in respect of HRA*.

*Subject of other conditions of respective sections

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No where is IT act a person has been prohibited from Claiming exemption u/s 10(13A) and u/s 24(b) simaltaneously

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