Availability of HRA exemption

[d.v. gupta]

my client has bought a house on loan and paid interest of Rs. 200000/-.he is living in a rented house and paying rent of rs 10000 p.m. he is also receiving rent from his bought house @ 5000 pm. whether he is entitle for HRA exemption being salaried and receiving HRA. whether Rs. 200000 paid as interest is deductible in total being rented house.

AI Summary

Employee Eligible for HRA Exemption and Interest Deduction; Offset Property Loss Against Salary Income. A client, who is a salaried employee, has purchased a house on loan, paying Rs. 200,000 in interest, and is living in a rented house, paying Rs. 10,000 monthly rent while receiving Rs. 5,000 monthly rent from the purchased house. The query concerns eligibility for House Rent Allowance (HRA) exemption and deduction of the interest paid. The response indicates that the client can claim an exemption for the interest paid on the loan, and any loss from house property can be offset against the annual salary income.