Can I claim both HRA and home loan benefit (principal and interest)

Can I claim both HRA and home loan benefit (principal and interest)

Hi ,
I bought a 9 years old house recently on HOME LOAN  which is 4Kms away  from where we staying in the same city now. We are staying in an apartment for RENT for my kid(5 years old) only because if we stay here , we felt that he will nurture his skills,explore himself and learn more from others, even while paying many kids there than what will teach to them. The same i'm seeing in him. 
The house which we bought is loacted at outskirts of the layout, and so much vacant space on backside , onside of the house, it seems its  not safer to stay there.

In such case , can i claim both HRA and HOME loan benefit(principal & Interest) for income tax

if not, how can i claim both (HRA and HOME loan) as we would stay in apartment  for sometime.  Please suggest me on this.

Appreciate for your valuable response/suggestion.

Thanks.

~Venu

Asked 8 years ago in Income Tax

Hi Venu,

Its a very subjective question. It totally depends upon the assessing officer scrutinising your case (if at all it picked up in the scrutiny).

To me whatever reason you have given, sounds reasonable and you can claim both HRA and interest on home loan.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar

CA, Mumbai

3576 Answers

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Talk to Abhishek Dugar

Hi Venu,

You could claim both HRA as well as home loan. But, in case you case picked up for assessment, you will have to prove your bonafides. However, please ensure that the house on which you are claiming the loan is shown under head income from house property and tax is paid on it. Further, you will have to prove that staying in this house was beneficial and necessary for you and your family, such as your child's school is actually closer to the house in which you are staying, etc.

Trust this clarifies.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LLB