Claim Both HRA and Housing Loan

Claim both house rent allowance and tax exemption on housing loan

 

If you are a salaried individual enjoying House Rent Allowances (HRA) from your employer and also own a residential house, then you can have an option to avail the deduction of both

(a) HRA and

(b) Housing Loan repayment (section 80C) & interest deduction (section 24).

The Income Tax Act, 1961 (“the Act”) treats HRA and home loan deductions under separate sections independently. The two are not interconnected to each other.

HRA is dealt with in section 10(13A) of the act while home loans are entitled for tax benefits u/s 80C for principle repayment and u/s 24 for interest payment.

When you can claim both the deductions?

Both the deduction can be claimed if you satisfy any of the following conditions:

1) You should own a house in a city other than your work place.
2) You own a house in the same city but reside in a rented accommodation for a genuine reason.
3) You can claim deduction U/s 80C for housing loan principal repayment and u/s 24 for interest payment of loan taken for your own house.

HRA exempt under section 10(13A) is monetary perquisite which is paid or allowed by the employer for providing accommodation to employee. HRA deduction can be claimed for payment of rent for accommodation.

If you are receiving HRA from your employer and reside in your own house, then you can claim deduction in respect of home loan only. HRA deduction is not available to you.

See Als0:

Advice on HRA

House Rent Allowance Exemptions and Allowaces

Income Tax on House property

 

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9 Responses to Claim Both HRA and Housing Loan

  1. harish says:

    I m a central govt employee n residing in rented house n taken home loan from bank but the house is under construction in that condition can I get both exemption I.e. HRA rebate interest of home loan.

  2. Nish says:

    I have a House in Gr Noida, already got possesion in Jul’ 2012 and recieving rent since Aug’12 in a saving account (not salaried a/c). I was in Noida(on rent) till Feb’ 13 and now living in Mumbai (on rent).
    So can I take benefit of both HRA and housing Loan ?

  3. Akhilesh says:

    I have only one house property in Greater Noida on Loan. I got the possession but no one is living in that sector.I am salaried class employee working in government company in south Delhi near Gurgoan. More over, i am living on rent accommodation near office.
    Can i claim both HRA and housing loan interest rebate ?

  4. Yash says:

    I have 2 housing loans. I have a house in native where my parents are staying and i took a new flat in Bangalore and i am staying in that flat from December 2012. so in this case, can i claim HRA till dec 2012 and 2 housing loans?

  5. RAM KUMAR SINGH says:

    I have a flat in greater faridabad , possession not offered to me and I lives in faridabad on rent , also claiming the rebate on hra. I can get the rebate on home loan principal / interest amount of loan or not.

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