Matter of home loan

This query is : Resolved

Guest

Guest (Querist)

02 September 2012 good evening to all expert,
my friend taken a home loan from bank.his monthly emi is 30000(25000+ 5000).but sir he does not lived in that house.my query is started now if he give his house for rent than he will show his rental income. but he did not gives his house for rent. and also he did not lived in that house. than what happen in this case.can he claim both hra and deduction u/s 24 and 80c. please reply

CA Suresh Jain

CA Suresh Jain (Expert)
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02 September 2012 Assuming your friend owns only one residential accommodation and also that he is not living in the city where he own the residential accommodation.

In such case :-

1. The residential accommodation is SOP
2. Income taken to be NIL
3. Interest pain on Housing Loan is allowable subject to max. limit of Rs. 1.50 Lakh
4. principal amount of loan repaid qualifies for deduction u/s. 80C
5. Since, your friend lives away from his SOP he is entitled for HRA exemption to be calculated as per relevant provisions

Guest

Guest (Querist)

03 September 2012 YES SIR HE HAD ONLY ONE HOUSE AND HE LIVED IN SAME CITY IN RENT

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Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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03 September 2012 yes agreed with expert,

if one house and live far distance from working place then you can claim both HRA and housing loan principle 80C subject to max. of Rs. 1 Lacs and interest u/s 24(b) also max. upto 1.50 in case of SOP.

totally agree with sureshji,