Neena (Accounts Manager) (27 Points)
24 December 2008Dear All,
Please tel whether an individual can take benefit of both Hra & home loan (80c deduction), lik if he is staying in rented house, and own house is vacated or used by some relative., if it is possible whether there is any condition to be satisfied against the same?kindly reply by refering sec/ notification etc
Venkatesh Rao
(Service)
(135 Points)
Replied 24 December 2008
It is allowed only if both rented house as well as own house are in two different cities under two different Municipal corporation jurisdiction.
Moreover if both the houses are in in the same Muncipal Jurisdiction then the distance between the office and the own house should be more than 50 Kms.
If both the house are situated in same city under same Muncipal Jurisdiction then only either HRA or Interest on home loan is allowed as deduction.
Kindly note that irrespective of the above situation Principle payment on home loan is allowed u/s 80C.
CAclubindia
