Sage-Tips

Can I claim both HRA and interest on home loan deduction?

Homeowners, who are paying back their home loan and getting HRA as part of their salary, can avail both the house property-related tax benefits to lower their taxable income. Deduction on home loan interest as per Section 24. Principal Repayment under Section 80C.

Can I claim HRA and interest on housing loan Quora?

Though HRA and EMI are not interrelated, Tax benefits for Housing Loan repayment and Interest can not be claimed till construction of the property is completed. As you are in rented home, you are eligible to claim benefit of HRA.

Can I claim HRA while own house?

One can claim HRA exemption as well as the deduction for interest on a home loan if one owns a house but lives in a rented house. Both these tax deductions are allowed only if the house one owns and the house one lives in are at different locations and there is a genuine reason for not living in one’s own house.

Can I show HRA and home loan simultaneously?

Yes, you can claim the HRA deduction and the tax benefit on a home loan even when you are living in the same city in which your home is. This can happen under two conditions; either your house is under construction, or you are living in a rented house and have rented your own house.

Can you claim interest on 2nd home?

If you use the place as a second home—rather than renting it out—interest on the mortgage is deductible within the same limits as the interest on the mortgage on your first home.

What is the maximum limit of interest on housing loan exemption?

What is maximum amount I can avail for deduction of interest paid on my housing loan? Under Section 24 of the Income Tax Act, an individual can claim tax deduction of the interest payment on the housing loan up to a maximum amount of Rs. 2,00,000.

Is it right to claim HRA and home loan interest tax together?

Unfortunately this is NOT the right thing to do. Both HRA and Home Loan Interest tax sections are unrelated. You claim tax benefit on HRA (House Rent Allowance) under section 10 (13A) while the tax benefit on payment of interest on home loan comes under section 24 (b).

Can you get HRA exemption if you stay on rent?

If a person staying on rent, lets out his house – In case an individual purchases a house, but instead of staying in it, he/she rents it out and decides to stay on rent as well, then he/she can avail both HRA exemption and interest on home loan deduction.

Can I claim HRA If I own a house in another city?

There may be case where you have rented a place where your spouse/parents stay (in a different city) while you own a house at the city of your employment and stay there. In this case you cannot claim HRA tax benefit as HRA is paid for staying on rent for purpose of employment. However you can easily claim home loan tax benefit.

Can I claim tax benefits if I buy a house on rent?

Many people buy houses on home loan but live on rent. A person in such a situation can claim tax benefits on: Availing tax benefits in the same financial year can help you save on your taxes considerably. However, this is possible only if the rent agreement is in your name and you service a home loan for another property.