View Full Version : HRA and Housing loan exemption from Income tax

03-01-2014, 11:10 AM
I am P N Nagaraju, Railway Employee at Hyderabad, having a small house, since it is not comfortable I am staying in a rented house, and own house was let out. I have shown the rent which I am receiving as my income as per rules. I am paying interest of Rs.245167 for housing loan. My employer is not exempting the HRA from Income tax since I have a house in the city, even though I submitted a rent receipt from my house owner. and only 150000 is deducting as house loan interest instead of 245167. as per my knowledge the HRA should be exempted and the total interest on house loan should be deducted when the property was let out. please some body help me by giving proper suggestion.

20-08-2016, 03:57 PM
You can claim HRA exemption (Rent paid - 10% of your annual basic pay) however max ceiling is the HRA received

only on the condition that you have submitted the loss from house prop calculations

i.e. Loss = Annual value minus Deduction

where Annual value is

RENT RECEIVED / REASONABLE RENT (WHICHEVER IS HIGHER) (proof of documents supporting the same may be required)
- Municipal tax (receipt required)

Deduction is

Std deduction of 30% of Annual Value as above
+ HBA interest without any ceiling (provisional certificate / final certificate of bank required)
+ Pre-construction EMI (certificate from bank required)

You should have completed the construction with 3 yrs of availing loan (excluding the availed year)

Your DDO can allow this after verification of facts

If he disallows due to the fact that they are not satisfied for various reasons or if the facts are not verifiable

you can claim in your ITR