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darshan (SDET)     18 December 2014

Hra and home loan interest

Hi

Me and my life together own a property that is given out on rent. The property is on loan. 

I stay in the same city but my office is 30 Kms from home, so , I stay in a rented property. 

How can I claim both HRA and Home Loan interest deductions? 

Thanks,

Darshan



Learning

 5 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     18 December 2014

  • Recently the Central Board of Direct Taxes and the Tax Authorities have issued an instruction on October 10 that when the rent payment exceeds Rs 1 lakh and the employee is claiming house rent allowance exemption then he has to furnish the permanent account number of the landlord. 

  •  
  • If you have co-owners and they are also co-borrowers, all of you will be allowed deduction for the interest according to your share.
  • In case there is Principal Repayment by you during the year (check your loan installment details), you can claim this amount under section 80C. However, the total amount allowed to be claimed under section 80C is capped at Rs 1,00,000.

Vineet (Director)     04 January 2015

1. you can continue to claim exemption for HRA as per rules.

2. for co-owned property given on rent, both co-owners are entitled for deduction of their share of interst payment on housing loan against rental income. both are entitled for deduction u/s 80C in respect of their share of principal payment.

Ms.Usha Kapoor (CEO)     30 August 2016

Dear Client,

                 Certainly!  In accordanxce with your ownershipp rights  the  ratio  of claiming tax benefits between  your husband  and you would be 75%:25%. As per section 24 of IT Act the maximum tax deduction you can get  on principal sum  is Rs.1.5 lac. As per 'Section 80 C the maximum  Tax benefitr you can get on interest payment is Rs.2 lakhs. and as per newly  introduced section 80 EE the maximum deduction you  can get subject to conditions you satisfy is Rs.50,000 and total of all these 3  sums  under  these 3 sections respectively are 1.5+2+50,000= Rs.4 Lakhs. Out of this  4 lakhs your husband can  claim tax benefit to the e xtent of 75%  means Rs. 3 lakhs. You can claim  your 25% tax benefit of Rs.1 lakh.

Ms.Usha Kapoor (CEO)     30 August 2016

Dear Client,

                 Certainly!  In accordanxce with your ownershipp rights  the  ratio  of claiming tax benefits between  your husband  and you would be 75%:25%. As per section 24 of IT Act the maximum tax deduction you can get  on principal sum  is Rs.1.5 lac. As per 'Section 80 C the maximum  Tax benefitr you can get on interest payment is Rs.2 lakhs. and as per newly  introduced section 80 EE the maximum deduction you  can get subject to conditions you satisfy is Rs.50,000 and total of all these 3  sums  under  these 3 sections respectively are 1.5+2+50,000= Rs.4 Lakhs. Out of this  4 lakhs your husband can  claim tax benefit to the e xtent of 75%  means Rs. 3 lakhs. You can claim  your 25% tax benefit of Rs.1 lakh.

Ms.Usha Kapoor (CEO)     30 August 2016

Dear Client,

                 Certainly!  In accordanxce with your ownershipp rights  the  ratio  of claiming tax benefits between  your husband  and you would be 75%:25%. As per section 24 of IT Act the maximum tax deduction you can get  on principal sum  is Rs.1.5 lac. As per 'Section 80 C the maximum  Tax benefitr you can get on interest payment is Rs.2 lakhs. and as per newly  introduced section 80 EE the maximum deduction you  can get subject to conditions you satisfy is Rs.50,000 and total of all these 3  sums  under  these 3 sections respectively are 1.5+2+50,000= Rs.4 Lakhs. Out of this  4 lakhs your husband can  claim tax benefit to the e xtent of 75%  means Rs. 3 lakhs. You can claim  your 25% tax benefit of Rs.1 lakh.


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