Dear All,
Please clarify my following doubts
1. One of my colleague bought a land at his native place and paying the housing loan. He is residing at chennai on rent. Now my doubt is can we take housing loan & HRA for tax exemption.
2. Another colleague residing at rental house, he bought a flat at chennai and his parents are residing there. Can he claims housing loan as well as HRA for tax exemption. He says last year he claimed both.
Regards
Sudha S
From India, Madras
2Please clarify my following doubts
1. One of my colleague bought a land at his native place and paying the housing loan. He is residing at chennai on rent. Now my doubt is can we take housing loan & HRA for tax exemption.
2. Another colleague residing at rental house, he bought a flat at chennai and his parents are residing there. Can he claims housing loan as well as HRA for tax exemption. He says last year he claimed both.
Regards
Sudha S
From India, Madras
With regard to question 1,
While there is no restriction on claiming both HRA exemption and housing loan interest rebate at the same time, the loan interest rebate can be claimed only after the construction of the property in completed. In your post, you have mentioned that the loan is for purchase of land. Such a loan cannot be construed as a housing loan and hence the interest payment on such a loan cannot be used for calculation of income tax exemption.
With regard to question 2,
Your colleague can claim both. The only question is about the annual rental value of the property which is occupied by the parents of your colleague: "should it be zero or should it have a notional value?" This question has to be answered by your colleague. Of course, I am assuming that your colleague's parents do not pay any rent to your colleague. If they do, then the rental amount should be considered while calculating the income from house property.
Regards,
T E Gautham
Email:
Website: Tandem Integrated Business Solutions
Blog: blog.tibs.in
From India, Madras
While there is no restriction on claiming both HRA exemption and housing loan interest rebate at the same time, the loan interest rebate can be claimed only after the construction of the property in completed. In your post, you have mentioned that the loan is for purchase of land. Such a loan cannot be construed as a housing loan and hence the interest payment on such a loan cannot be used for calculation of income tax exemption.
With regard to question 2,
Your colleague can claim both. The only question is about the annual rental value of the property which is occupied by the parents of your colleague: "should it be zero or should it have a notional value?" This question has to be answered by your colleague. Of course, I am assuming that your colleague's parents do not pay any rent to your colleague. If they do, then the rental amount should be considered while calculating the income from house property.
Regards,
T E Gautham
Email:
Website: Tandem Integrated Business Solutions
Blog: blog.tibs.in
From India, Madras
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