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TDS Salary clarification

Rajagopalan (EXECUTIVE FINANCE) (56 Points)

16 October 2007

16.10.2007

Dear Sir

Clarification required for the staff TDS deduction on salaries:(Chennai)

HRA paid to X Rs.187000

Rent paid less 10% of salary Rs.160806

50% of Salary Rs.155972

Also he is having own house for that he is paying interest 1.50 lacs per annum and principle Rs.75000 p.a.Please clarify whether we can take HRA deduction under SEc 10(13A) and Interest on borrowed capital together in computing TDS. Also clarify the principle repayment can be taken under 80C.

Rajagopalan S.

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3 Replies

swamy.cb (Manager-Accounts) (431 Points)
Replied 16 October 2007

Hi Rajagoplan, follwing points you need to understand If person having a Housing loan and he wants claim HRA also, then he has to let out the house and he has to take rental income from that. Then he calim HRA and interest both.

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Vk Duggal (320 Points)
Replied 16 October 2007

It will also depend on the fact whether employee has house in Chennai or other places. If the employee has house for which he is paying interest then he can claim interest deduction by showing as self occupied but could not use as he is not able to use being not in that town

M.Sriram Shenoy (CA Final) (814 Points)
Replied 30 January 2008

It depends whether the person has the house at his working place. If the person has his own house at one place and works at a different place, then he is eligible to claim HRA. But he cannot claim both HRA as well as loan (Principal and interest portion) when the house is self occupied. And at the same time, HRA calculation should be calculated based on whether he works in a metro city or not.