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 : 130) Post Your Comments
1. Specialist in Financial issues.

Are you in debt? Do you need an instant funding? Do you dream of owning a house, Car and good Business? Do you need a loan ahead for the Christmas family vacation? Have you been in search of a legitimate loan and been turned down severally? If YES" Search no further. We offer Personal/Commercial loans at 2% interest rate without collateral. get instant Approval even with bad credit. Serious and interested applicants should please contact us via email and be free from all your financial troubles. NOTE:we will save you from payday loans that are making billions from the prey of the poor.
You will be contacted within 24hrs with the loan terms and conditions as soon as the details have been received. Don't waste another moment. Contact us today for the lifeline you and your home need.

Best Regards.

Mr.Lim Koh
lim koh (Posted: Sep 12, 2015)
2. nolvadex tamoxifen citrate tablets nolvadex tamoxifen citrate cycle buy nolvadex pharmacy where to buy tamoxifen citrate nolvadex generic nolvadex for sale clomid nolvadex buy online how to buy nolvadex online www buy nolvadex com review buy nolvadex no prescription buy generic nolvadex no prescription buy nolvadex pharmacy buy nolvadex xt buy nolvadex xt online where to order nolvadex online nolvadex or proviron where to buy buying nolvadex canada nolvadex post cycle buy
Byrtujaden (Posted: Jul 26, 2015)
3. 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)
Show All Comments
 Select a product:

 Select a product:

Make your home loan repayment easier
Effect of employment on loan eligibility...
Home Loan: A way to reduce your taxable...
Save tax with ELSS
NRI Banking in India

get lost love back baba ji Swaziland +91 9929415910
##vashikaran specialist baba ji in $#bhilwara...
Get your =!!love back by vashikaran specialsit Molvi...
how to get status of home loan

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