Claim of tex deduction on EMI and Rent

Himanshu (Querist) 30 September 2009 This query is : Resolved
I am owner of only one house which was purchased on resale by ready possession and I am paying EMI on Housing Loan from last 5 years but now I am not staying in that house. I am paying Rent for House in which I am staying now. Can I claim tax deduction on both payment that is payment of EMI and payment of Rent. Please advice.

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A V Vishal (Expert) 30 September 2009
Himanshu,

It is not clear whether the place of the employment and your residence is in the same city or not, however if you are employed outside the place where your house is situated you can claim both or else TECHNICALLY you need to claim either of the one.

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Raj Kumar Makkad (Expert) 30 September 2009
The opinion of Av Vishal is correct.

Sachin Bhatia (Expert) 01 October 2009
Correct opinion Mr. Vishal

Vineet (Expert) 08 December 2009
Dear Mr Himanshu

You can very well claim both the deductions without any Technical or legal difficulty as none of them bar/ exclude each other.

The payment of rent is against HRA received by you and thus determines the exemption our of total HRA received.

The deduction of EMI is actually the interest component claimed against rental income of house property. As you have only one house,the same is either self occupied or given on rent. For one property which is not actually given on rent, the same cannot be treated as deemed let out and therefore self occupied for the purposes of I T Act and rental income from the same is Zero and deduction for home loan interest upto Rs 1.50 Lakhs can be claimed against the same.

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