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HRA Vs.Deduction U/s.24(b)

CA Y Kondal Reddy (Chartered Accountant) (28 Points)

03 November 2007

Hi,

Can some body claim the HRA and Deduction U/s.24(b) to wards HL at a time?

If yes, please light some examples.

Regards,

Kondal

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2 Replies

Ramakrishna (Financial Executive) (438 Points)
Replied 03 November 2007

Dear Shri.Kondal Reddy, You are highly ambitious in trying to pocket both the benifits in one stroke. If a salaried man claims HRA exemption, then it means that he is occupying a rented house. If the same person owns a house for which HL interest is paid, then first of all he has to offer rental income for that property which he could not occupy. Only then HL interest can be claimed. However, in a case where the assessee could not own reside in his own house owing to his employment at another station, and that house has not been let out and no other benefit have been derived therefrom, then no rental income to be offered as per Section 23(2), 23.(3). He can claim HL interest u/s. 24(b).