CA Manjunatha R S (Practice) (650 Points)
13 February 2009this a real time situation.
an employee is staying & employed in bangalore owns a property and claims it to be a self occupied property, at the same time he's claiming HRA for which he has proper evidences. For his self occupied property he's claiming interest under 24b. should the interest be allowed? if yes/no please qoute the case law or section.
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 13 February 2009
In Section 24(b) it is no where mentioed that the property should be self occupied. It maybe possible that the family members of the persons are living at that home which is taken for loan.
Whereas Section 10(13A) is allowed only when it is occupied by the assessee.
So according to me both can be allowded if proper proofs are furnished.
Do correct me if im wrong.
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 13 February 2009
The assessee can't claim HRA as he already owns (lives and claims as self occupied also) a house property in the same city where he is working..............
HRA is allowed only if the assessee doesn't own house property.....Only if the property is not occupied by him, that he can claim HRA even if occupied by any of his family member by showing as payment of rent to that member.............
Sowmya P K
(Chartered Accountant)
(251 Points)
Replied 20 February 2009
Yes, the interest can be allowed.
As per section 23(2) self occupied property means used for self occupation OR house which could not be occupied for reasons of employment or biz/prof elsewhere. The conditions for treating as SOP are given in 23(3): not actually let out and no other benefit is derived from such property.
Deduction u/s 24(b) for SOP only says deduction for a 23(2) property shall be rs.30000/- or rs.150000/- as the case may be.
So interest is allowable as the employee only claims the house to be SOP and may not be occupying it due to reasons of employment. In addition he can also claim HRA exemption.
CA CS VINAYAK PATIL
(CHARTERED ACCOUNTANT)
(921 Points)
Replied 20 February 2009
| Originally posted by :Manjunath | ||
| " | this a real time situation. an employee is staying & employed in bangalore owns a property and claims it to be a self occupied property, at the same time he's claiming HRA for which he has proper evidences. For his self occupied property he's claiming interest under 24b. should the interest be allowed? if yes/no please qoute the case law or section. |
" |
Interest Cann't claim because u can claim either HRA or interest
suneet
(CA FINAL)
(421 Points)
Replied 20 February 2009
VERY GOOD MANJUNATH
THIS QUESTION IS VEY CLERALY GIVEN IN V.K SINGHANIA [69.1-2.a] JUNE 08 EDITION
suneet
(CA FINAL)
(421 Points)
Replied 20 February 2009
SORRY I WAS WRONG BOTH DEDUCTIONS CAN BE CLAIMED
I AM SURE AND DAM CONFIDENT
Kiran Kumar V
(C.A. Final)
(181 Points)
Replied 20 February 2009
Hello Mr. Manjunath
In this case you can claim interest even if this is self ocuupied property.
But you cant claim HRA exemption u/s 10(13)A
Kiran Kumar V
(C.A. Final)
(181 Points)
Replied 20 February 2009
If you proove that your family members or dependent parents are residing in the Self Occupied Property.
You can claim bothe the deductions
CA Sakshi
(CA Practice)
(309 Points)
Replied 21 February 2009
| Originally posted by :Shudhanshu | ||
| " | In Section 24(b) it is no where mentioed that the property should be self occupied. It maybe possible that the family members of the persons are living at that home which is taken for loan. Whereas Section 10(13A) is allowed only when it is occupied by the assessee. So according to me both can be allowded if proper proofs are furnished. Do correct me if im wrong. |
" |
Sudhanshu you might have read that if a person for his employment or business has to leave his place where he has a house he can get HRA and benefit of self occupied property if and if he has not earned any income form such house- means not let out. So you are correct. But the fact and reason is this which will clear your doubt.
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