Section 24b

[Bala B]

Builder handed over my house.  My parents are staying in it and I am staying in the rented house.

So will i able to claim any amount under interest by making let out value as 'ZERO'.

Could please clarify me.

[A Wilson]

Dear Bala,

Employee may claim both the interest on housing Loan and HRA Exemption for rental payments if he is not occupied his Own House due to his employment in different Place(but not within the city in which the own house located).

You may give the following self declaration to your employer to claim your housing loan interest upto maximum of Rs.1,50,000/-(Under the same provision as Self Occupied)

Declaration by the Employee who owns a House Property which is not occupied by him due to his employment at other place and no other benefit derived from that property

 

I                                                                                ( Name of the employee with PAN )  do hereby declare that I have owned a House property at .                                                                                    .

                                                                                          ( Full Address of the House Property ) which is not occupied by me during the previous year 2012-13 due to my employment at .                           .

.                                        .  ( Place with State ). Further I declare that the property mentioned above is not actually let out during the period 01-04-2012 to 31-03-2012 and no other benefit derived from the above property by me. And also I declare that I have occupied a rental house at .                                 .                                                     

                                                       . ( Full Address ) due to my employment.                                                                                                                                                                                      

 

 

 

Place :

Date :                                                                                                   Signature of the Employee         

Thanks & Regards,

A.Wilson

AI Summary

Housing loan interest and HRA may both be claimed when owned house is unoccupied due to employment elsewhere. An employee whose owned house is not occupied due to employment elsewhere may claim both housing loan interest (treated as self occupied) and HRA for rented accommodation, provided the owned property was not actually let out and no other benefit was derived. The employee should furnish a self declaration giving the owned property's address, stating non occupation due to employment at another place, confirming it was not let out during the previous year, and providing the address of the rented residence occupied because of employment.