Though both of u are co-applicants, u are equally entitled to claim benefits under income from house property. the maximum limit is Rs.150000. Since ur wif is making all the payments , ur wife is entitlr\ed to claim the benefits.
I.T. act is silent on claiming both the benefits. Suppose u bought a house in Dwarka & place of workk is Noida, and u are residing at Noida, then u can claim both the benefits. Only one member can claim the benefits of HRA.
Only thing is that my office says that if my property was in Delhi or Gurgaon but HRA recpt was for Noida ( with work place also being in Noida), then it would have been permissible, as I could make a declaration that due to business compulsion or employment reasons, I need to stay in Noida though my property was in Delhi.
But, in my case it is reverse. The property & work place are in Noida while HRA is claimed on Delhi address. The Finance dept says that a declaration that due to personal convenience I need to stay in Delhi is unacceptable to IT dept.
So, there is some confusion between " business compulsion / employment reasons " versus " personal convenience". It looks like IT accepts only the business reason.
Also, they advice that I can claim loan benefit for Noida property also provided I consider it to have a deemed rental value . Which means, say I am already claiming HRA for a delhi acco. For Noida property I claim home loan benefir. In addition, I also need to pay taxes for Noida property's deemed rental as per municipal valuation. In other words, I can not enjoy best of both worlds.
50 PER CENT OF THE PRINCIPAL YOU CAN CLAIM UNDER SECTION 80C AND 50 PER CENT OF THE PRINCIPAL YOUR WIFE CAN CLAIM. SIMILARY 50 PER OF THE INTEREST BOTH OF YOU CAN CLAIM ON ACCOUNT OF INTERST. I MAY POINT OUT THAT IF THE HOUSE IN QUESTION IS NOT OCCUPIED BY YOU INTEREST UP TO ANY AMOUNT IS ADMISSIBLE AS DEDUCTION. BUT IF THE HOUSE IS OCCUPIED WHOLLY OR PARTLY BY YOU THE INTEREST UP TO RS.1.50 LAC IS ADMISSBILE. FURTHER PLEASE NOTE THE INCOME OF THE SAID HOUSE SHALL BE CHARGEABLE TO TAX UNDER THE HEAD INCOME FROM HOUSE PROPERTY. IF THE HOUSE IS SELF OCCUPIED THE INCOME FROM THE HOUSE UNDER THE HEAD HOUSE PROPERTY WILL BE NILL. IN SUCH A CASE THE HRA RECEIVED BY YOU AND YOUR WIFE SHALL NOT BE EXEMPTED AND WILL BE INCLUDED IN YOUR INCOME AND T AXED UNDER THE HEAD INCOME FROM SALARIES.
As per my understanding, if you've a single house then whether occupied or not, 1.5l limit works with renatl value as nil, irrespective of what you earn from it.
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