• HRA for rent when having home in same city

I am in Bengaluru where the traffic & travel times are infamous. Hence I am thinking of taking on rent a house, nearer to my work place. But I have a home loan currently running for my flat in the outskirts of Bengaluru. And I have the said owned flat in the outskirts put out on rent, which I am claiming as my income.

As a salaried person, can I claim HRA for the rent paid and also claim exception for repayment on home loan for my flat in Bengaluru while declaring its rental income ?
Asked 2 years ago in Income Tax

- Ideally the house should be located at some other place other than the place of profession. As you have mentioned the house has been let out, the entire interest liability on home loan will be setoff with rental income. In such a scenario, you can claim HRA exemption alongwith interest benefit on housing loan. Even if the house is self occupied, you can claim the benefit of HRA exemption alongwith interest benefit keeping in view the practical difficulty. In such a case, interest upto Rs. 2 lacs will be setoff. If you are opting alternative tax scheme then no benefit of HRA exemption and interest benefit would be available. It is better to keep the owned house property on rent to avoid any litigation.


For detailed discussion, you may contact telephonically.

Vivek Kumar Arora
CA, Delhi
4708 Answers
967 Consultations

5.0 on 5.0

No I don't think that would be an issue especially when you are showing rent Income from same.

To calculate HRA value: https://www.taxontips.com/house-rent-allowance-hra-available-even-when-it-is-not-a-part-of-salary-slip-hra-calculation-calculation-sheet-available/


Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4216 Answers
94 Consultations

5.0 on 5.0

Yes, you can claim both HRA and repayment for Home loan.

Ruchi Goel Anchal
CA, Gurgaon
519 Answers
15 Consultations

5.0 on 5.0

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