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Claiming House Rent Allowance

House Rent Allowance can be claimed under Section 10 (13A) if you're living in rented accommodation

I took a home loan to buy a flat (Construction completed) in Bangalore. The loan was sanctioned and fully disbursed in June-14 and the full actual EMI starts from July-14. I had completed the registration and I will be taking the possession of the flat in mid August-14. Till August, I will be in a rented home and will be paying rent.
My Questions:

  1. Can I claim HRA for May, June, July, 2014 months for FY 2014-15?
  2. Also, can I claim Home loan interest - ₹200,000 (whole FY interest will be 5 lakh) for FY 2014-15 in addition to HRA for 3 months?
Please let me know.
- Kannan B

House Rent Allowance can be claimed if you are living in a rented accommodation to the extent provided under Section 10 (13A) of Income Tax Act 1961. Based on facts provided above, you can claim HRA exemption for the months you were staying on rent during the previous year.

HRA and Interest paid on Home Loan are governed by two different sections. You can claim both provided you are eligible. Yes, you can claim interest paid on home loan under Section 24B maximum upto ₹2 lakh as per recently proposed budget guidelines.



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