Abraham
1
Hi,
Me and my wife co-own a property in Hyderabad and currently live in trivandrum. We have interest paid in tune of 3.75 Lakhs and Principal about 1.2 Lakhs during 2010-2011. The property is not let out currently. We are individually claiming HRA as we are living in a rented appartment and would like to know how much can we claim under 80C and 24b of income tax act.
As you work in a different city than where your own house is, you can claim both HRA and home loan tax benefits.
In case house in not let out, maximum deduction for interest would be limited to 1.5 lakh per person. In case loan has been taken in joint names and each of you is contributing equally in EMIs, you both can claim tax deduction of 1.5 lakh each u/s section 24. Similarly 60,000 can be claimed u/s 80C by each of you for home loan principal repayment.
