Can we take a deduction of home loan interest component as well as HRA Deduction?
From India, Pune
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2From India, Pune
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Hi Priyanka, Yes can consider both deductions as HRA and Interest on Housing Loan (U/S 24), provided the employee should produce a valid possession letter for the said property.
From India, Pune
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From India, Pune
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I am of the opinion that deductions for HRA are admissible as per rules if one is residing in rented accommodation. If residing in an owned house, then HRA is fully taxable. When one is paying a house loan, it implies that he is residing in his own house. It may be possible if the loaned house and residence are in different cities.
Thanks,
V K Gupta
From India, Panipat
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Thanks,
V K Gupta
From India, Panipat
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Hi Priyanka, I think it is not possible to claim HRA and Interest on housing loan simultaneously. In case you have not get possession then you can do so. Or both houses are in different cities.
From India, Mumbai
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From India, Mumbai
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Thank You all for your reply..... But if employee has bought a flat & has the possession certificate, this flat is vacant & Staying in a rent flat elsewhere. Now can we consider both components?
From India, Pune
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From India, Pune
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In this case, the employee can claim both home loan exemption as well as HRA deduction, but he has to show rent receipts. To claim HRA, only two conditions have to be fulfilled:
a) The residential house is not in his own name.
b) He has to pay rent.
If the aforementioned conditions are satisfied, the employee can claim HRA. For claiming the house loan interest, he only needs a certificate from the interest payee.
From India, Mumbai
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a) The residential house is not in his own name.
b) He has to pay rent.
If the aforementioned conditions are satisfied, the employee can claim HRA. For claiming the house loan interest, he only needs a certificate from the interest payee.
From India, Mumbai
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Home Loans & interest,HRA matters.doc
Home Loan Calculator.xls