Income Tax Return: There is also a home loan and want to claim tax exemption on HRA too, know how it is possible?

The last date for filing Income Tax Return in the country is 31 July 2022. The government has not made any announcement to extend this date till now. In such a situation, it is necessary that the income tax return has been filed on time, because now only a day or two are left for it to come on 31st July.

Generally, people do not have detailed information about income tax returns, so most of the people have to take the help of a professional person to file the return. During ITR filing, there is confusion among people regarding repayment of home loan and HRA (Housing Rent Allowances). Often people believe that tax exemption facility can be availed for either of the two. But, the fact is that you can claim tax exemption facility for both while filing income tax return.

Provisions have been made for this in the Income Tax Act. In such a situation, if you are eligible to avail the benefit of simultaneous tax breaks on repayment of HRA or home loan under the provisions of the Income Tax Act, then you should avail this facility and save by deducting the amount towards tax. . Let us know about three situations when you can take the facility of tax exemption on both HRA and home loan simultaneously…

1. Own a house in one city and live in a rented house in another city

Most of the salaried people have their own house in one city and they work in a rented house in another city. Such people can avail tax exemption against both HRA and home loan repayment. If you live in a rented house in another city for a job and have your own house in another city, you can claim income tax benefit on HL as well as on home loan installment and interest while filing your return. It is important to note here that you can get the benefit of this facility only if you are a salaried person and you also get HRA in salary head.

2. Own and rent a house in the same city

Day by day cities are getting bigger and cities are expanding towards rural areas. In such a situation, to avoid the delay in going to office, some employed people, despite having their own house in the city, take a rented house near the office. Such people can also avail tax exemption on both home loan deduction and HRA. You can claim income tax exemption under both at the time of filing the return. You will also get the benefit of this provision only if you prove that your work place is far away from the house owned by you and you are living in a rented house. In this situation too, you should take advantage of tax exemption on both Home People Deduction and HRA.

3. Rent your house and live in the same city on rent

A person can have many reasons for living in a rented house apart from the reasons given above, such as the family being large, the house being small, the children’s house being near the rented house etc. opt to stay at home. If you also live in a rented house for any such reason, you can claim tax exemption for both HRA and home loan deduction at the time of filing income tax return.

This is how tax exemption is available on home loan

There are mainly two types of things in a home loan – the full principal of the loan and the interest amount. You can claim tax deduction under section 80C of the Income Tax on the principal amount of the loan. As per the provisions of the Income Tax Act, you can get a maximum tax exemption of up to Rs 1.5 lakh under 80C while you can avail tax exemption of up to Rs 2 lakh on the interest amount included in the loan.

Expansion

The last date for filing Income Tax Return in the country is 31 July 2022. The government has not made any announcement to extend this date till now. In such a situation, it is necessary that the income tax return has been filed on time, because now only a day or two are left for it to come on 31st July.

Generally, people do not have detailed information about income tax returns, so most of the people have to take the help of a professional person to file the return. During ITR filing, there is confusion among people regarding repayment of home loan and HRA (Housing Rent Allowances). Often people believe that tax exemption facility can be availed for either of the two. But, the fact is that you can claim tax exemption facility for both while filing income tax return.

Provisions have been made for this in the Income Tax Act. In such a situation, if you are eligible to avail the benefit of simultaneous tax breaks on repayment of HRA or home loan under the provisions of the Income Tax Act, then you should avail this facility and save by deducting the amount towards tax. . Let us know about three situations when you can take the facility of tax exemption on both HRA and home loan simultaneously…

1. Own a house in one city and live in a rented house in another city

Most of the salaried people have their own house in one city and they work in a rented house in another city. Such people can avail tax exemption against both HRA and home loan repayment. If you live in a rented house in another city for a job and have your own house in another city, you can claim income tax benefit on HL as well as on home loan installment and interest while filing your return. It is important to note here that you can get the benefit of this facility only if you are a salaried person and you also get HRA in salary head.

2. Own and rent a house in the same city

Day by day cities are getting bigger and cities are expanding towards rural areas. In such a situation, to avoid the delay in going to office, some employed people, despite having their own house in the city, take a rented house near the office. Such people can also avail tax exemption on both home loan deduction and HRA. You can claim income tax exemption under both at the time of filing the return. You will also get the benefit of this provision only if you prove that your work place is far away from the house owned by you and you are living in a rented house. In this situation too, you should take advantage of tax exemption on both Home People Deduction and HRA.

3. Rent your house and live in the same city on rent

A person can have many reasons for living in a rented house apart from the reasons given above, such as the family being large, the house being small, the children’s house being near the rented house etc. opt to stay at home. If you also live in a rented house for any such reason, you can claim tax exemption for both HRA and home loan deduction at the time of filing income tax return.

This is how tax exemption is available on home loan

There are mainly two types of things in a home loan – the full principal of the loan and the interest amount. You can claim tax deduction under section 80C of the Income Tax on the principal amount of the loan. As per the provisions of the Income Tax Act, you can get a maximum tax exemption of up to Rs 1.5 lakh under 80C while you can avail tax exemption of up to Rs 2 lakh on the interest amount included in the loan.