April 20, 2021 1:27 am
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I have purchased a residential house, while I continue to stay in a rented place in my current city of residence. I have no plans to move to the new house. I pay interest on the loan taken to purchase the new property, which I understand is deductible for income tax.
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April 20, 2021 1:27 am
Topic starter
Yes. The only conditions for claiming HRA are that rent must actually be paid by the taxpayer for the rented premises which he occupies and the rented premises must not be owned by him. Owning any other property will not have any impact on the exemption of HRA.
As regards the deduction on interest paid, it will depend on whether the property is let out or to be treated as self-occupied and subject to other conditions.
