Q 1. I and my wife both are govt. employee .can both of us take an HRA?

Normally, the One who pays rent can claim the HRA exemption. You may analyze, as to in whose case (either yours or that of your wife) maximum tax benefit is possible, before deciding who will claim the same. In case of rent paid, there also needs to be a proper rent paid receipt in the name of the person paying the rent and a proper leave and license agreement to justify the rent payment.

Q 2. Please give me some guide line, how to get exemption from IT. I have a house loan from ICICI bank in Trivandrum for an amount of Rs. 5, 39,000/- Now I am working in Chennai and staying in a rented house. My family is staying in my house in Trivandrum what is the procedure for exemption from IT by claiming House loan repayment as well as House rent allowance paid. And I also have a Medical insurance from ICICI Prudential for me and my wife. Expecting a clear replay from your side

The house in Trivandrum will be treated as a Self Occupied Property. You can claim a deduction for interest paid on the loan taken for the purchase of that house. Assuming that the loan as taken after 1.4.1999, you can claim a deduction if interest payable of upto 150,000 and this can be set off against your other income. A deduction under 80C can be claimed for repayment of the housing loan subject to the overall 80C limit of 100,000. A portion of the House Rent Allowance can also be claimed as exempt since you are living in a rental accommodation. A deduction for Medical Insurance will nonetheless be available to you under 80D.

Q 3. I possess a Ground Floor Tenement in a society. Now I have constructed first floor on the same tenement. I have taken a housing loan from a bank. I want to know whether I will get tax benefit on principal and interest both or only one - as purchase of land is not involved and extension is on the existing tenement.

Yes, you can avail of the tax benefits available both for Interest and the principal amount of housing loan repaid.

Q 4. I know that Rs 1, 50,000 can be shown as house loan interest per year. In my case I paid Rs 1, 50,000 as interest for my house loan and also around Rs 2, 50,000 as pre-EMI interest during the last 18 months. My query is can I show the house loan interest as Rs 4, 00,000 (i.e., 150000+250000)?

You can claim maximum interest amount of Rs. 150000. In case any interest pertains to the period prior to the acquisition of the property, such interest can be claimed in 5 equal installments starting with the year when the property is acquired but subject to the overall limit of 150,000 mentioned above.

Q 5. I am staying in government accommodation. Whether license fee should be exempted from income tax

Where accommodation is provided by Central Govt. or State Govt. License fee determined by them in respect of accommodation in accordance with the rules framed by such Govt. (less the rent actually paid by you) will taxable as a perquisite in your hands.

Q 6. Can a person can avail the income tax benefit on the second house. if the tax benefit is more on the 2nd property

Yes, you can consider any one of your property as self occupied and claim exemption for the same. In respect of the other property the ratable value of property will be deemed to be your income, if it ahs not actually been rented.

Q 7. If a person has two housing loans, one house is let out and tax filed accordingly, then, what is the total interest exemption eligible for tax rebate

You can claim upto Rs.150, 000 in respect of your Self occupied property and the total amount of interest paid without any limit on the house which has been let out

Q 8. Me and my wife have taken joint home loan .For agreement we have given stamp duty and registration fees. I want to ask whether we both can claim stamp duty and registration fees by dividing the amount instead of taking benefit singly. Please solve

Yes, Stamp duty and registration fees paid at the time of purchase can be equally divided & included in the cost of the property

Q 9. What tax benefit we get from home loan (principal and interest), under what section, is it included in 80c?

Repayment of principal amount of home loan is allowable as a deduction under 80C upto limit of Rs.100, 000 along with various other investments. In case where a loan is taken for acquisition of a property which is self occupied and not rented, Interest can  be claimed upto Rs.150000 under sec.24 provided loan is taken after 31.3.99

Q 10. If the house is rented one, then what all benefits do we get, in respect of rented income, principal repayment and interest repayment and under what section?

If a house is rented , then entire amount paid towards interest on loan taken to acquire that house will be allowed as deduction from rental income. The Principal amount repaid Will be allowed as a deduction under 80 C upto limit of Rs.100, 000.

Q 11. I am staying in a house owned by my wife and son. Can I take a receipt from them for house rent and claim the exemption

If you actually pay rent to your wife and major son ( and not just take receipts), you may be able to claim some portion of the House Rent Allowance received by you as exempt. The rent received by your wife and major son will be taxable in their hands, though they will get a deduction of 30% against the rent so received. It is being assumed that your wife and son is owner of the house. In case your son is a minor, his property income from such rental will be clubbed with your income.

Q 12. Hi, Sir my annual income for the a.y.2009-10 is approximately Rs.350000/- and I have purchased a flat of Rs.8, 98,000/- and stamp duty & registration charges paid Rs.32000 including Legal Fees (Rs7500) with I deduction taken in my total income and second I am given home loan from credit co-op society, so do I enjoy benefits of section u/s.24 up to Rs.150000/-(interest).

Yes, you can claim deduction for stamp duty & registration charges & even principal amount of loan repaid under 80C.upto maximum limit of Rs.100, 000. Interest paid on home loan can be claimed against your property income. If property is self occupied then you can claim interest paid upto maximum of Rs.150, 000

Q 13. If I have 7200 HRA per month then how much rebate I could have

You can claim the lowest of the following three as exempt from actual HRA received, provided you are living in a rented accommodation:- 
1) 50% of salary 
2) Actual rent paid - 10% of salary  
3) Actual HRA received 

Q 14. I have total income above 9 lacs. I have constructed my house and paying interest for housing loan to the tune of 5000/-. Now I am staying in rented house and paying the rent of Rs.15000/-. Can I take the benefit of deduction from income housing loan interest payment and rent paid? My place of working is 50km away from my own house and it is inconvenient to reach my working place due to odd working hours.

Yes. If you are receiving a House Rent Allowance (HRA), you will be able to claim a portion of the HRA as exempt because you are living in a rental house. Further, the house which is owned by you will be treated as a Self Occupied House and you can claim interest on a housing loan taken to acquire that house as a deduction subject to a maximum of Rs. 150,000 assuming the loan was taken after 1.4.1999.

Q 15. I have taken a personal loan from a bank for the construction of the house, which is the parental property and in the name of my mother. I would like to know whether if I can get the benefit of it in my tax calculation

No - since a tax exemption is available only to the owner of the house. However if you are a joint owner of the house with your mother then you may be able to claim the tax benefits associated with this.

Q 16. If a son is paying rent to his father then can he claim against HRA

If you actually pay rent to your father ( and not just take receipts), you may be able to claim some portion of the House Rent Allowance received by you as exempt. The rent received by your father will be taxable in their hands, though they will get a deduction of 30% against the rent so received. It is being assumed that your father is owner

Q 17. I have a house in Chandigarh for which I took loan and am paying installments and claiming interest and enjoying tax benefit both on interest and principle repayment along with HRA claim. (I am working and staying in Mumbai). Now I have bought another flat in Mumbai which is under renovation. I have taken a loan for this flat also and is paying installments. Can I continue enjoying tax benefit on interest and repayment of one of the flats and HRA since I am still staying on rent?

You can continue to get an HRA benefit for the rent you are paying. Since you will now own two houses, one of them will have to be deemed to be let out - and you will be taxed on the rental capacity of that house. In respect of loan taken to acquire that house, the entire interest paid, without a limit of Rs.1 50,000, can be claimed as a set off. Which house is to be treated as self occupied and which is to be treated as  deemed to be let out will be at your option.

Q 18. We have taken a home loan. House is on my name as well as on spouse name. Spouse is co-applicant for loan. We are paying interest on home loan @ Rs. 2 Lacs. I am availing deduction of rs.1.5 Lacs whether spouses can claim the deduction of balance amount

Yes, even your wife can claim interest upto Rs.150, 000 provided the loan repayment EMIs are being paid even from her

Q 19. I have purchasing land with the help of land loan, will I be entitled to get tax benefit on land loan.

No, the tax benefits are available only for buildings or land attached to such buildings and not for land alone.

Q 20. I am working in Bangalore. I am buying a house in Kerala by taking a home loan of Rs. 20/22 Lakhs. In the current year I have to pay a tax of Rs. 34000/- against my salary income. Please advise if I take a loan of 20 / 22 Lakhs, whether I will be able to get the benefit (because I am buying it in Kerala - not to rent it out but for my stay only when I go to Kerala).

Assuming you the Kerala property will be the only property you own and that you are staying in rented house at Bangalore, You will be able to claim upto Rs.100, 000 under 80C for principal repayment of loan and can claim interest paid upto Rs.150, 000 on the loan taken. This assumes that the house in Kerala will not be rented out. If it is rented out then against the rentals earned the entire interest can be claimed as an expense.

Q 21. I have a property in Chennai which I have let out and I came from UK for my holidays due to unforeseen reason my return to UK is getting delayed, so temporarily I took a house for rent. Can I now claim both 'Loss of interest' and 'HRA'

On the Chennai property you can claim interest paid against the rental earned. If you are drawing a HRA you can claim a portion of the HRA as exempt since you are living in a rented property.

Q 22. I bought one flat in 2003 for which I took loan of 7.5 Lacs from ICICI Bank. I was getting the benefit of interest and principal amount in my income tax calculation. Now I have paid the amount of ICICI with the help of loan of 4 lacs from my company at the rate of 8% interest. Now is it possible to avail income tax benefit on interest part which I am paying to my company.

Yes since the new loan was taken only to repay the earlier loan, to that extent it would be possible to claim the interest

Q 23. Tax benefit on Home loan

Repayment of principal amount of home loan is allowable as a deduction under 80C upto limit of Rs.100, 000 along with various other investments. In case where a loan is taken for acquisition of a property which is self occupied and not rented, Interest can  be claimed upto Rs.150000 under sec.24 provided loan is taken after 31.3.99

Q 24. What will be the limit of loss on account of interest paid on housing loan taken in joint name with myself & my wife? Also half of the amount of EMI is paid by my wife & half is paid by me. Interest is Rs. 512496/- & principle part is Rs. 76500/-. Can we take separately Rs. 150000/- each?

Yes, both of you can claim Interest separately Rs.150, 000 from your property income since you are co-owners of the property and you can claim set off against other heads income. You can also claim the principal amount paid under 80C equally.