Can a taxpayer declare revenue tax profit on each house mortgage and HRA?

A salaried particular person submitting Income Tax Return (ITR) usually finds it complicated whether or not they can declare revenue tax profit on each House Rent Allowance (HRA) and residential mortgage. Especially, when it repays house mortgage however stays in a rented lodging. According to tax and funding consultants, one can declare each tax advantages in the event that they fulfill revenue tax guidelines for each claims. They stated that tax profit for HRA has completely different algorithm whereas tax reduction for house mortgage has completely different set of rule. If a salaried incomes particular person has taken house mortgage however the house mortgage borrower shouldn’t be residing in that house and residing in a rented house, then the salaried particular person might grow to be eligible for revenue tax profit for each house mortgage and HRA supplied they fulfill revenue tax norms.

Speaking on the revenue tax rule for claiming tax exemption for one’s HRA Mumbai-based tax knowledgeable Balwant Jain stated, “HRA benefit is available for salaried earning individual only under some certain conditions. First and foremost condition is one getting HRA as part of one’s salary, second condition is the salaried individual paying rent for the home which is occupied by him or her but not owned by him or her.” Jain stated that if a salaried particular person is fulfilling these circumstances she or he can declare revenue tax profit for HRA.

Speaking on revenue tax guidelines for house mortgage profit Harsh Roongta, Head at Fee Only Investment Advisers stated, “Income tax benefit for home loan can be claimed under two sections. For home loan principal repayment, one can claim benefit under Section 80C, which can’t go beyond ₹1.5 lakh in single financial year. For home loan interest repayment, one can claim income tax benefit available under Section 24(b).”

Roongta stated that one can declare revenue tax profit on as much as ₹2 lakh house mortgage curiosity paid towards as much as two self-occupied properties. Roongta went on so as to add that one can declare revenue tax profit on house mortgage solely when it’s owned by the incomes particular person.

Both Balwant Jain and Harsh Roongta stated that there isn’t a regulation that claims those that personal a home and pay house mortgage cannot declare tax profit for each house mortgage and HRA. They stated that so long as the incomes salaried particular person is fulfilling these guidelines for claiming house mortgage and HAR advantages, they will declare tax profit for each HRA and residential mortgage.

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