Hello, I am Sunil, an employee working in the Finance department. One of my colleagues declared TDS on my payroll software. He mentioned HRA under Sec 80GG, and at the same time, he mentioned a house loan under Sec 80C. Is it correct? Can you explain what I should do?
From India, Hyderabad
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From India, Hyderabad
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Being a finance person, you are not aware of the IT sections. HRA comes under section 10(13A). Housing loan principal payment under Sec 80C. Pon
From India, Lucknow
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616From India, Lucknow
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I think his real problem is something else:
Can an Employee Claim HRA as Tax Exempt?
Can an employee claim HRA as tax exempt when he obviously has a house (for which he is claiming a deduction for a housing loan)? Sunil, you need to have detailed knowledge of income tax to be able to do this. Please check with your HOD or your auditor as to what the correct procedure is.
From India, Mumbai
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Can an Employee Claim HRA as Tax Exempt?
Can an employee claim HRA as tax exempt when he obviously has a house (for which he is claiming a deduction for a housing loan)? Sunil, you need to have detailed knowledge of income tax to be able to do this. Please check with your HOD or your auditor as to what the correct procedure is.
From India, Mumbai
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He can claim HRA, as well as claim House Loan Interest Amount, since he/she must have not got the possession of the House.
From India, Ahmadabad
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From India, Ahmadabad
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It is possible, but not in every case.
Considerations for Claiming HRA and House Loan Interest
Is he also showing income from the house for which he repays the housing loan? There is also a possibility that, like in his own house (for which he repays the housing loan), his dependents stay, and he and his wife are staying in another rented house nearby his workplace. Whatever the case is, the Commissioner of Income Tax should accept the same. Otherwise, IT will be collected with a penalty. It is the IT department's decision whether to accept or not when both HL and HRA are claimed.
From India, Chennai
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Considerations for Claiming HRA and House Loan Interest
Is he also showing income from the house for which he repays the housing loan? There is also a possibility that, like in his own house (for which he repays the housing loan), his dependents stay, and he and his wife are staying in another rented house nearby his workplace. Whatever the case is, the Commissioner of Income Tax should accept the same. Otherwise, IT will be collected with a penalty. It is the IT department's decision whether to accept or not when both HL and HRA are claimed.
From India, Chennai
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
Income Tax Calculator.xls