Can You Claim HRA Exemption As Well As Interest & 80C Deduction?

taxworry
taxworry / Blog / 7 yrs ago /
  0

Whether HRA exemption and housing loan rebate can be claimed together. Prashant P.Damani

Yes, both can be claimed , but in some special circumstances. For claiming HRA exemption under the I T Act, one has to pay rent. But if you have claimed that the house property purchased by is self occupied , which most of us do as the annual value of one house is taken as Nil , but even then interest deduction is allowed, how can you claim that you are paying rent.

Special Circumstance No 1

Suppose you are living in some other cities for employment purpose, and by taking loan you have purchased/constructed a house. In that case all these following things happen together
  1. You may be staying in rented house and drawing HRA from your office.
  2. The annual value of the property shall be taken as nil on account of section
  3. You can claim interest from Nil value of property and repayment of principal amount can be claimed u/s 80C.
Special Circumstance No 2

You have built a house by loan and paying interest . You have given the house on rent . You are living in a house by paying rent. In this case ,
  1. Your house property income will be computed by taking rental receipt of market value which is ever is more minus the interest paid and deduction @ 30% on account of repair.
  2. You can also claim principal amount paid as deduction u/s 80C
  3. You can claim HRA exemption as you are paying rent.