Tax exemption can also be claimed on HRA along with home loan. But for this you have to fulfill a special condition. Know more what is this condition?
The financial year 2021-22 is about to end. As March 31 is approaching, the salaried classes are looking for ways to save tax.
How will it be if you get the benefit of tax exemption on both Home Loan and HRA? Perhaps your answer will be, what could be better than this. But this does not happen in every case, for this it is necessary to have some special condition.
Same question for all salary classes
Akhileshwar, who works in an IT company in Gurgaon, has bought a flat in Noida. He lives in a rented house in Delhi due to his office being away from Noida.
In such a situation, the question is whether they will get the claim of tax deduction on HRA along with repayment of home loan. This question is not only of Akhileshwar but of all the salaried class people.
You can claim even by staying in a city
In this regard, Chartered Accountant Ashish Mishra says that the salaried class can claim both with certain conditions. Both these claims can be achieved even by staying in the same city. However, Akhileshwar’s house is in Noida and he lives in Delhi.
This is how you get the benefit of exemption on HRA
According to CA Ashish Mishra, in most of the companies in the current era, House Rent Allowance (HRA) is part of the Cast to Company (CTC). The benefit of tax exemption on this is available only when you pay the rent of the house yourself. In such a situation, the company can claim HRA by giving a rent receipt signed by the landlord.
Benefits of home loan
Home loan EMI has two parts. The first part of the principal and the second part of the interest. You can claim tax exemption by claiming principal and interest. Tax exemption up to 1.5 lakh can be availed under 80C. Apart from this, tax exemption can be claimed on the interest of Rs 2 lakh on the home loan.
Under what circumstances HRA and tax exemption on home loan?
Akhileshwar gives EMI for the house bought in Noida. Here his parents live. While he lives with his family on rent in Delhi near the office. In this situation, he can take advantage of tax exemption on HRA along with home loan.
Even if you give the flat on rent, you can claim both the things. But in this situation, you will have to show the money coming from the rent in the income.
