NEWS & ADVICE : HOME LOANS
Can we claim tax benefits on home loan and HRA together?
By Joseph Samson
Print    Email    RSS   

A house is one of the biggest investments we would make in our lifetime. Most of us might already know that our home loans are eligible for tax benefits under the Income Tax Act but there is yet another component that is connected to our taxable income. This is known as House Rent Allowance (HRA).

HRA is a component of your salary package and is given by an employer to an employee for the sole purpose of meeting the cost of renting a home. An HRA allowance is allowed to any person who is staying in a rented property and the rent should exceed 10% of the basic salary. But if one is serving a home loan then is he eligible for the HRA benefit is an important concept that needs a thorough study.

However HRA and home loan provisions are two different issues as far as the Income Tax Act is concerned and one does not influence the other. Home loans are entitled for Tax benefits under Section 80C (Tax benefit on principal repayment) and Section 24 (Tax benefit on interest payment) of Income Tax Act. On the other hand HRA benefit can be availed or not depends on certain situations. Let us evaluate these situations:

1. Living in your own home

If you have taken a home loan to purchase the house you are residing in then you are not entitled for the HRA benefit since you are not residing on a rented property. However tax benefits on principal repayment and interest payments can be availed by the person.

2. Home possession in another city

For instance you have a house in one city for which you have taken a home loan and you reside in another city due to work or similar reasons, then you are eligible to avail all the benefits including HRA, tax benefits on principal repayment of home loan and tax benefit on interest payments of home loan.


Page  | 12 |  
(Comments Posted : 128) Post Your Comments
1. generico de xenical en venezuela how quickly can i lose weight on xenical xenical order online do you need prescription buy xenical xenical in the prevention of diabetes in obese subjects order xenical online xenical 120 mg buy online buy xenical online singapore xenical buy online canada buy xenical 120mg online qual o nome do xenical nos estados unidos xenical buy online no prescription consultation buy xenical online in canada where can i buy xenical from buy cheap xenical online can you buy xenical online xenical orlistat 120mg malaysia xenical and alli receive fda liver damage warning
Sihementart (Posted: Jul 4, 2015)
2. what is the difference between clomid days 3 7 and days 5 9 how long does it take clomid to get out of your system clomid online purchase buy clomid cheap online buy generic clomid cheap purchase clomid online buy cheap clomid online uk can i buy clomid at cvs buy clomid cheap online buy clomid online no prescription australia where can i buy clomid in singapore clomid buy cheap buy clomid 50 mg online how much does clomid cost in south africa buying clomid online cheap what are the dangers of buying clomid online do you need a prescription to buy clomid buying clomid online canada is it safe to buy clomid online uk should buy clomid online is it possible to ovulate 2 days after finishing clomid
Cauvefootca (Posted: Jun 27, 2015)
3. http://flagyl-online-buy.net/ - Metronidazole 500 Mg Dapoxetine Online http://lasix-buy-online.net/
zwizpiw (Posted: Jun 26, 2015)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Tips to buy an ‘under construction’ home
Effect of employment on loan eligibility...
J&K Bank raises PLR
The home loans interest rate story: The...
If the interest rate is same, how do you...


get your love back by vashikaran specialist baba ji...
I WANT BALANCE AMOUNT TO BE PAID OF MY HOME LOAN...
home dispute problem solution by skswami ji...
Ravet Call Girls 07057810109 / 09766585868 katra...
Hi Class Call girls vs. VIP Escorts in Delhi NCR...
09915682002 Escorts Services In Delhi Connaught...

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive