I am staying in rented house in Mumbai as this is near to my work place and I am entitled to HRA from my employer.
My query is can I avail deduction in income tax for both of these i.e. on housing loan EMI and HRA for which I will be producing rent receipts.
Is it possible to claim tax deduction for housing loan EMI and HRA simultaneously?
A. HRA and home loan provisions are two different issues as far as the Income Tax Act (ITA) is concerned and one does not influence the other. So, you may own a flat or any number of flats, either in the same city that you work in or anywhere else in the whole of India or for that matter abroad -- this will, in no way influence the HRA deduction that you are entitled to. Conversely, notwithstanding the amount of HRA that you receive, your home loan deductions on the EMIs for the house that you have bought or intend to buy will not be affected.
Source:A.N. Shanbhag from Tribune 21/July/2008
By Mr Chitranjan, Section Ask Questions
Posted on Mon Jul 21, 2008 at 02:32:25 AM EST
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