Imagine that you have bought a house in Noida on a home loan and are currently staying in a rented house in Gurgaon because of your job posting.
Today, we will tell you how you can get a tax deduction claim on House Rent Allowance (HRA) along with the repayment of a home loan.
Salaried employees enjoy the benefit
Experts say that if the salaried employee fulfills certain conditions, then they can claim both the benefits.
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According to Taxbuddy’s founder Sujit Bangar, HRA (House Rent Allowance) is sometimes part of the Cost to Company (CTC). The benefit of tax exemption is not available until you do not pay the rent of the house in which you are living. In such a situation, you can claim HRA by giving a rent receipt to your company.
What benefits are available on a home loan?
We mainly get two types of tax benefits on home loans. Actually, EMI has two components: principal and interest. You can claim a tax deduction on the principal amount under section 80C. The maximum tax exemption that can be availed under section 80C is Rs 1.5 lakh. You can also separately claim a tax deduction of up to Rs 2 lakh on interest.
Consider that you have bought a house on a home loan in Noida, the EMI of which you are paying. Your parents live in this house. If you are living on rent in Noida or any other city, then you can get the benefit of tax exemption on home loans as well as HRA. If you have given your property on rent as well and are living on rent yourself, then you can claim both the benefits.
