Availing home loan & hra exemptions
Vaish T (85 Points)
21 December 2015Vaish T (85 Points)
21 December 2015
Ankit Taprania
(CA FINAL )
(542 Points)
Replied 24 December 2015
1.Unless and untill you have rented your your house , it will be regarded as " self occupied".
2. Even if that house is stamped as" self occupied " , HRA will be available to you . because the location of house and the place you are living on rent are in different cities .
3. yes you can claim both interes deduction and HRA . BUT your deduction of home loan interest will be restricted to 200000 per annum , even if actual interest paid is more.
4 . if you show the house as rented , its rental income will be taxable in your hand BUT you will be allowed to claim full amount of interest as deduction
5. you are only required to file ITR 1. showing income from salary and loss from house property.
Vaish T
(85 Points)
Replied 24 December 2015
Thank you very much Ankit for detailed reply. FY 2015-16, my loan interest would not be above 2 lacs, so I am not worring about it. As you mentioned, while filing return with ITR-1, I will specify the house as "self-occupied". Some people suggested that I have to show some notional rent even if it is self-occupied (with intention of showing it as unoccupied to claim HRA). But you have clarified by doubts. Please let me know if my understanding is incorrect in any way. Thank you very much again.
Ankit Taprania
(CA FINAL )
(542 Points)
Replied 24 December 2015
Since you have only one house you are not at all required to show any notional rent .
claim both HRA and house loan interest .enjoy
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