MILIND GUMASTE (AM) (108 Points)
21 January 2013Dear Friends
1. Can an assessee avail exemptions both under Sec 24 (Housing Int ) and 10 13 a (HRA exemption)
2. what is the criteria to claim int exemption (location of property) and HRA exemption simultaneously
3. if
- a salaried assessee
- has self occupied residence in a city
- however is residing in rented house outside city limits by virtue of his employment,
in this case can he claim Int exemption u/s 24 and HRA exemption u/s 10 both ?
Pl comment asap
Milind
Nagarajan DK
(CA)
(103 Points)
Replied 21 January 2013
Dear friend,
As per my understanding. Both section do not interfere viseversa. Both are under different heads also. So you can claime Interest, and HRA exemption.
Please correct me if I am wrong.
Thank you.
Ritesh Surana
(Article Assistant)
(49 Points)
Replied 21 January 2013
Dear Friend,
Assessee can claim deduction under both the sections as they are independent of each other.
Deduction u/s 24b housing interest : Actual expense or Rs. 150000 which ever is less.
and
deduction u/s 10(13A): Which ever is less
1.) Actual HRA received
2.)Rent paid less 10% of Salary
3.) 50% of salary in case of metro city or 40% of salary in case of other city.
Since the assessee is currently residing outside the city limit he can claim all 3 deductions namely:
Sec. 24A- Standard deduction of 30%
Sec. 24B- housing Interest.
Sec. 10(13A)- HRA.
Had the the assessee resided within the city limits he could claim deduction either of sec. 24A or sec.10(13A).
Thank you.
Ashish Kr. Jalan
(Manager (F&A))
(38 Points)
Replied 22 January 2013
Interest paid on a second home loan is fully deductible :- The tax benefits of a home loan are well known. Under Section 24b, one can claim a deduction of up to Rs 1.5 lakh a year for the interest paid. If the taxpayer buys a second house through another home loan and gives it on rent, the entire interest paid on the home loan during a given year can be claimed as deduction. If you have more than one house, any one is deemed to be rented out. So the interest income on the home loan for that house can be claimed entirely for deduction, provided the rental income or deemed income is taxable. For instance, if you have taken a home loan of Rs 50 lakh at 9.5% for 20 years, your interest payment in the first year will be Rs 4.7 lakh and you can save tax up to Rs 1.09 lakh.
HRA as well as home loan benefits:-
If you took a home loan and are still living in a rented place, you will be entitled to:
Of course, you can claim tax benefits on the home loan only if your home is ready to live in during that financial year. Once the construction on your home is complete, the HRA benefit stops. If you took a home loan, got possession of the house, have rented it out and stay in a rented accommodation, you will be entitled to all the three benefits mentioned above. However, in this case, the rent you receive would be considered as your taxable income.
PARSHOTAM LAL
(LDC)
(21 Points)
Replied 22 January 2013
Sir,
I am an exserviceman discharged from army w.e.f 01-09-2009. I get my pension in 2010 March. Wether the tax is required to be paid on pension with my salary or not.
Thanking you.
Yours faithfully,
Parshotam Lal
CAclubindia
