How to claim Housing Loan Interest & HRA while owing 2 flats in Diff city’s and both the flats are ocupied by us only no rent

sachinpatidar 1
Viewed 1991

Hi,

I have two flat one in Pune and other in Indore, I am working in Pune location and leaving in pune’s flat with my wife. And my mother & brother are leaving in Indore’s flat. Both the flats are ocupied by us only no rent.

Flat owners detail:- Indore Flat: First owner “Me” and second owner “My wife” Pune Flat: First owner “My Wife” and second owner “Me”

Loan Applicaent detail:- Indore Flat Loan: First Applicatent “Me” and second Applicatent “My wife” Pune Flat Loan: First Applicatent “My Wife” and second owner “Me”

Here my question are: o Can I claim HRA in Pune. o Can I claim Intrest for both flat’s loan. o Can I claim for loan principal for both flat’s loan.

section-80c house-rent-allowance housing-loan section-24 income-tax
1 Answers

You cannot claim HRA in Pune as house is already owned by you and your wife.

You can claim tax benefit for home loan interest payment for both houses. If you show both as self occupied, max 1.5 lakh exemption would be available per year. If you show notional rent (add same into taxable income) on Indore one, then there won't be any limit on interest benefit for Indore flat.

You can claim principal repayment for both flats under section 80C. Max limit under 80C is 1 lakh (combined with insurance, PPF, EPF, NPS, tax saving mutual funds, NSC etc.)

Pankaj Batra5212
Related