Become a Certified GST Practitioner with CA Arun Chhajer. Register Now!

HRA exemptions

Vijaykumar (ACCOUNTANT) (487 Points)

01 January 2009

I shall feel thankful on throwing light on my queries:

I have an own house at work place for which I took home loan which is quite

away from my office hence I shifted in a rented house closure to office while

the owned house is being used by my family which is not yielding any income.

As my employer pays me HRA hence shall I eligible to claim rent u/s 10??

Simultaneously, am I eligible to claim housing loan interest u/s 24 (2)??

And house loan repayment u/s 80C??

The pay roll division will have any objection to consider the situation while

computing my tax liability?

Thanks in advance to the replies

Reply
Follow
Share

6 Replies

Pavan Jain S (Chartered Accountant) (1575 Points)
Replied 02 January 2009

As far as claming deduction u/s 24(b) and u/s 80C is concerned, you are eligible.

Since you own a HP in the same city in which you are employed, you are not eligible for exemption u/s 10(13A).

Upgrade to CAclubindia Pro. Subscribe Now!

R.Suresh (Sr. Executive) (394 Points)
Replied 02 January 2009

You have eligible to claim as deduction u/s 24 and 80C for your HP laon.

You have Own HP in same place which you have employed means not eligible to claim HRA for computing tax liability.

Vijaykumar (ACCOUNTANT) (487 Points)
Replied 02 January 2009

Thanks for the valuable inputs. In continuation to above situation, I wish to know more- my work place in a village border in Medak Dt. while the owned house in Hyderabad which is 60KM away, earlier from where I used to commute. But due to inconvenience I have shifted in a rented house near 7km (at my work place) a sub-urb part of greater Hyd which is also not falls in Medak dt.

At this situation what the rules says- i.e. I mean can I claim the all the three benefit ??

If yes, then my employer will accept these projection while computing tax??

With thanks

somya (ca ) (172 Points)
Replied 02 January 2009

Still u cannot claim for HRA cuz the place u r residing is in the territorial limits of the city..so dat place wud also b considered as in the same city. bt u can claim for interest and principal amount of house loan.

Vijaykumar (ACCOUNTANT) (487 Points)
Replied 02 January 2009

Happy to see the responses. Territorial limits: could you please through light on the term??, In case, I stay in the territory of work place and produce the rent receipt, will it be allowed to eligible all the three cases under claims i.e. exempted?? will my payroll division will consider the case before computation of the income tax?? May please be taken the case positively, as I would like to save more and more .....Warm regards...

Upgrade to CAclubindia Pro. Subscribe Now!

Pavan Jain S (Chartered Accountant) (1575 Points)
Replied 03 January 2009

The Intention of section 10(13A) is to provide benefit to persons who live in a rented house bcoz his source of income is at a place other than his place of residence. In your case, since your residence is 60 kms away from your work place, it can be very well substantiated before the AO that you are living in a rented house and that the rent payments made by you are genuine.

In my view, you are entitled to exemption.