Annual value - taxability of the property, Income Tax

[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.

Posts / Replies

[Ravi Chopra]

A house which is own by you but you could not occupied the same due to employment is eligible for self occupied house benefits. But, you need to ascertain that same has not been let out for a single day for the relevant period. Since the employee is living in a rented house, he is entitled to HRA benefits. Therefore he can avail both the benefits simultaneously.