Sir, I am an Engineer working in a MNC in Bangalore. As per my CTC I am getting HRA but I am staying in rented house paying rent Rs. 23,000/- monthly. Sir, Am I eligible to get incometax exemption/ rebate on rent being paid by me. Kindly advise.

Ans: Hi Dineshkumar
Yes you could claim the HRA benefit for the Vadodara rented house if you are opting for the old tax regime

Ans: No, you can not claim HRA as you own a property in same city

Ans: These are the deduction you can claim on the rental income and Home loan –

1. Rental Income Deductions (Section 24(a)):
Claim a standard deduction of 30% from your gross rental income before applying any other deductions. This effectively reduces your taxable income from rental activity.

2. Home Loan Interest Deductions (Section 24(b)):
Enjoy tax relief for the interest paid on your home loan for a let-out property. Claim the entire interest amount as a deduction, minimizing your overall tax burden.

3. Home Loan Principal Repayment Deductions (Section 80(C)):
Utilize a deduction of up to Rs. 1.5 lakhs for the principal portion of your home loan repayment. This further reduces your taxable income and offers additional tax savings.

Disclaimer: While these deductions offer considerable benefits, consulting with a qualified financial advisor before making any financial decisions is always recommended.

Ans: To claim HRA exemption, you must receive house rent allowance as part of salary structure and submit relevant details/documents to employer.

Ans: No, under new tax regime you can not claim HRA