Annual value - taxability of the property

[rahul kumar]

1.)an individual working in a pvt company resides in delhi in a rented house. 2.)he owns a house in delhi which is situated 30km far from his working place.this house was vacant for the complete year(f.y-2008-09) 3.) for the financial year 2008-09 he received house rent allowance @rs.6000/-p.m and paid rent @ rs.7500/-p.m 4.)for the financial year he paid rs.20000/- as interest on housing loan taken from hdfc now my question is-whether he can claim exemption for hra u/s10(13A)and simultaneously deduction u/s 24 from house property income for interst paid on housing loan?whether the annual value of his house property will be taken as nil because the house was remeined vacant throughout the year.

AI Summary

Can an Employee Claim HRA Exemption and Housing Loan Interest Deduction? Section 10(13A) and Section 24 Explained An individual residing in a rented house in Delhi and working for a private company owns a vacant house 30 km from his workplace. For the financial year 2008-09, he received a house rent allowance of Rs. 6000 per month and paid rent of Rs. 7500 per month. He also paid Rs. 20,000 as interest on a housing loan. The query concerns whether he can claim both HRA exemption under Section 10(13A) and a deduction under Section 24 for interest paid on the housing loan. The response clarifies that he can claim both benefits, provided the house remained vacant and was not let out.