chanakya (Teacher) (182 Points)
25 January 2010A state govt. is presently repaying EMIs for the house recently constructed.He is presently residing in it. Can he use ITR-1 to file his IT returns? There is no item in ITR-1? Please tell me which form to use? and How?.
Can he claim HRA exemption also if he lives in his own house?
Mitali Agarwal
(Company Secretary)
(638 Points)
Replied 25 January 2010
ITR - 2 should be used if he is paying interest on housing loan as he can claim deduction u/s 24.
Rest he can claim deduction u/s 80C for repayment of housing loan.
HRA exemption can be claimed only when rent is being paid by the assessee.
Since he is residing in his own house and not paying rent, so full HRA will be taxable.
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 25 January 2010
no HRA exemption. he can file ITR 2 and claim deduction. since it is self-occupied, max deductionu/s.24 is Rs.150000/-
ITR 2 only should be used.....Interest will get deducted u/s 24 as loss from House Property(Limit of Rs. 1,50,000)..........................Principal amount will get deducted u/s 80 C (along with LiC and othr investments , Limit is Rs. 1,00,000).................HRA exemption will not be available as he is living in his own house.
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