Can we claim HRA and home loan simultaneously for Tax Benefit? – A question which is often asked by many tax payers. This is mainly because many employers do not allow both tax benefits together in certain situations. Unfortunately this is NOT the right thing to do.
Both HRA and Home Loan Interest tax sections are unrelated. You claim tax benefit on HRA (House Rent Allowance) under section 10(13A) while the tax benefit on payment of interest on home loan comes under section 24(b). However there can be issues if both the sections are used together with the intent of tax evasion.
Tax Benefit on HRA
HRA is part of your salary structure and is paid mainly to provide for accommodation in the place of employment. A salaried person can claim HRA if both these conditions are satisfied:
- HRA allowance is part of the Salary
- The employee is staying in a rented accommodation and paying rent for it
How much Tax Benefit on HRA?
The maximum HRA that can be claimed for tax exemption is minimum…
