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Tax Qurrey

Jitendra Jhanwar (Officer) (129 Points)

25 February 2010

Hello Freinds,

Can a employees takes both the benefits of HRA and Interest on self occupied House Property .

if yes then what is the conditions???

TKs

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(Guest)

HRA exemption can be claimed only when you pay rent.

If you claim interest on self occupied house property, it mean that you have residential house and living in it. So you don't pay rent and consequently you can't claim exemption on HRA.

But if you let out you property, then you can claim interest as well as HRA exemption provided you offer rental income. Your case you have metion as "interest on self occupied house property.

So answer to your question is NO.

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Pradeep Sharma (student) (114 Points)
Replied 25 February 2010

Dear Jitendra

HRA exemption can be claimed only when u pay the Rent for the house occupied.

So in the quwstion u can take the exemption of both the thing. by the simple case study u can underastnd the meaning wht i want to tell u

Lets Supposed that Mr.X (an employees) doing the duty in mumbai & he has a house proerty in Delhi.

In which his family is living along with his parent & wife,on which housing laon has been taken, the intrest is been paid regurally & he is been transfered to the mumbai by the employer where he is getting the HRA.

so in this case he can claim the exemption of both i.e the HRA & intrest on house propety,

Jitendra Jhanwar (Officer) (129 Points)
Replied 25 February 2010

Dear Pradeep,

If my self occupied house property is 25 km away from my office and i live in a rented house near by my office and pay a monthly rent then i well take both the exemption??????????

(Guest)

In such case it is possible.

The condition for claiming HRA is

1. Assess should not live in own residentail accomodation and

2. He should have incurred expenditure towards payment of rent.

In case house property

The annual value of house property can be nill when the following condition satisfied.

1. Property occupied by assesee for his residential use or

2. Property could not be occupied because of employment in any other place.

You question satisfies both the need.

Assess pays rent.

Assess does not live in the residential house because of his employment. So annual value is nil and the interest on house property can be claimed withoud offereing rental income.

Bidyadhar Buxi (Accountant) (41 Points)
Replied 25 February 2010

Hi,

If the Assessee is having residential House in his own name and not occupied by him/her and paying Rent in legal way, the assessee can claim HRA.

And since the assessee is paying Interest on Housing Loan for house owing by him/her, that can be claimed as loss on the head " Income from House property".

So both can be claimed in this case.

Thanks,

Bidyadhar Buxi