Renting own property & staying on rent in someone elses property

My flat is within 8 kms radius from company. I have given it on rent. Currently i am staying in a company accommodation which deducts whole HRA & adds the value of Perquisites in my salary. Can i stay rented in some other property nearby to company & claim HRA benefit as well as whole interest deduction benefit for my home loan?

asked Aug 13 '13 at 23:50 by Pruthvi 263615

Thank You! It means i can give my flat on rent (which is within 8 kms radius to company) and claim a full interest deduction benefit ( Rs. 5 lakhs in my case). Also i can stay on rent in any nearby property within 2 kms radius from company for convenience, financial reasons, requirement of flat size, family reasons, other facilities & claim the HRA benefit as well. In this process only rental income is added to my salary. Please clarify.
(Aug 14 '13 at 18:34) Pruthvi
Yes, you are right.
(Aug 14 '13 at 19:36) Pankaj Batra

You can claim both HRA exemption and home loan interest benefit at same time.

But in case if IT department someday call you for scrutiny, you will have to explain why you are living on rent, even after having your own house nearby. Also in that case as house is not self occupied, rental income may also be added to your taxable income.

answered Aug 14 '13 at 00:00 by Pankaj Batra 5.2k320

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Thank you!
(Aug 14 '13 at 18:37) Pruthvi

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Asked: Aug 13 '13 at 23:50

Seen: 1,774 times

Last updated: Aug 14 '13 at 19:36