Home loan and HRA: how the tax works out

Person currently employed with Company A, is staying in a rented apartment in Mumbai and has bought himself a property in Chennai for which he has taken a home loan. He finds himself in a dilemma while filing tax returns. "Can I claim both HRA and home loan benefits?" This seems to be a confusing factor for most tax payers. When a person pays rent, under the Income tax act, he is definitely allowed to claim both HRA and home loan benefits (interest payment and principal repayment).


Let us evaluate various possible situations an individual can find himself in and understand what the Income Tax Act permits him to do.

1: You live in your own house

You have taken a home loan and residing in the house purchased with it. Since you are residing in your own house, you will not be able to claim HRA. However, you will be able to claim tax benefits on both the principal and interest repaid on the home loan.

2: You own a house in another city

This situation was the one faced by Person. He resided in Mumbai but had bought an apartment in Chennai taking a home loan. Person will be entitled to HRA exemption and tax benefits on both, the principal and interest repaid on the home loan.

3: Your house cannot be occupied at this point (e.g. under construction)

You have bought a house in Mumbai taking a home loan and you're currently living in Mumbai in a rented apartment because the house is under construction. In such a case, you are eligible to claim HRA.

In the case of tax breaks on the home loan, you can claim tax benefits only for your principal before the completion of your house. Once your house is completed, you can claim tax benefits on the total interest paid up to the date of completion in five equal installments in five years beginning from the year of completion.

4: You have a house which is ready for occupation but you cannot reside in it

You have bought a house in Delhi taking a home loan and now you aren't residing in it but are living in a rented apartment in Delhi itself for genuine reasons e.g. the house that you have bought is far away from your office. In such cases, the Income tax act permits the individual to claim HRA and home loan benefits which includes both principal and interest repaid on the home loan.
Also, please note that if your house remains vacant, then you will still need to pay tax on a notional rent income.
5: You have rented your own house and currently residing in a rented house

You took a home loan and your house is now ready for occupation. You have rented the same out while you reside in a rented house. The Income Tax Act allows you to claim both HRA and home loan benefits.

However, in such a case, since you are the recipient of rent because you have let out your own house, that income is taxable at your hands.

The Income Tax Act treats HRA and home loan deductions under separate sections independently. The two are not interconnected to each other. HRA is dealt with in section 10(13A) Rule 2A while home loans are entitled for tax benefits under section 80C (tax benefit on principal repayment) and Section 24 (tax benefit on interest payment) of the Income Tax Act. Hence, feel free to avail both tax benefits accordingly.

Now that we have dealt with all possible situations with regard to availing HRA and home loan tax benefits, let's take Person's situation as an example to help you figure out how to avail them.

Claiming tax benefits on a home loan:

Person had purchased an apartment in Chennai for Rs. 38 lakh three years back. He took a home loan of Rs. 32 lakh to fund this house purchase. So far, this year he has repaid an interest of Rs. 3.3 lakh and a principal amount of Rs. 60,000.

Section 80C offers tax rebate on home loan principal up to a limit of Rs. 1 lakh and Section 24 on interest up to a limit of Rs. 1.5 lakh. So Person can utilize up to Rs.1.5L on his interest paid and avail the tax benefits in full for the amount paid towards principal.

Calculating tax benefits on HRA:

Person earns a basic salary of Rs. 40,000 per month and has rented an apartment in Mumbai for Rs. 20,000 per month (he is eligible for 50 per cent of the basic pay for HRA exemption, as he resides in a metro). The actual HRA he receives is Rs. 25,000. These values are considered to find out his HRA tax exemption:

a. Actual HRA allowance from the employer, i.e. Rs. 25,000,
b. fifty per cent of the basic salary as he resides in a metro (else 40per cent), i.e. Rs. 20,000, and,
c. The actual rent he pays for the house from which 10 per cent of his basic pay is deducted, i.e. Rs. 20,000 - Rs. 4,000 = Rs. 16,000

The value considered for his actual HRA exemption will be the least value of the above figures. Hence, the taxable HRA amount for Person per month will be Rs. 25,000- 16,000 (available HRA deduction) = Rs. 9,000.

Top 10 places to see animals in the wild

Top 10 places to see animals in the wild



1.Serengeti National Park - Tanzania

Northern Tanzania provides more opportunities to see large numbers of animals in the wild than possibly any other spot in the world. Both Serengeti National Park... and Ngorongoro Crater Conservation Area are prime spots to see animals in the wild, and both are famous for spotting the 'big five,' a phrase coined by hunters in Africa referring to lions, elephants, buffalos, leopards, and rhinoceros.

2. Bandhavgarh National Park - Madhya Pradesh, India

Tigers are an animal many travellers would love to see, but unfortunately, the endangered species is increasingly rare. According to the WWF, there are only approximately 3,200 wild tigers with the largest population, the Bengal tiger, found primarily in India. Since 1993, the park has been considered a tiger reserve so it has the highest density of tigers in India, making it likely you'll spot one during your visit.



3.Kangaroo Island - South Australia

Only 15 kilometres (9.3 miles) off the South Australian mainland, Kangaroo Island is a great site for seeing all kinds of animals. Although there is animal activity on Kangaroo Island year round, two times of year provide special sights. In the Australian summer (December to February), kangaroos and wallabies can be seen at dawn and dusk. In Australian winter (June to August), kangaroo and wallaby joeys (babies) start to emerge from the mother's pouch and feed alongside them, and southern right whales pass along the island's shores during their migration from Antarctic waters.



4. Katmai National Park and Preserve - Southwestern Alaska, USA

One of the greatest locations in the Northern hemisphere to observe animals is in the Alaskan wilderness. While there are a great variety of animals to be found in the Southwest area of Alaska, visitors to Katmai National Park and Preserve are usually on the lookout for brown bears. According to the park's website, the brown bear population at Katmai National Park was recently estimated at over 2,100. Since there is no road access to the King Salmon, the park headquarters, visitors must fly into the park.



5. Parc Omega - Montebello, Quebec, Canada

The park is located in Montebello, about 132 km (82 miles) from Montreal and only 81 km (50 miles) from Ottawa, making it a great stop for visitors to either region who'd like to see some Canadian wildlife. A 10 km (6.2 mile) driving path is open year round and a great idea for families. By tuning your radio to 88.1 FM, you can learn more about the animals and the habitat during that time of year. From the safety of a vehicle, visitors will see bison, elk, black bears, red deer, and both timber and arctic wolves.



6.Volcans National Park - Rwanda

High in the mountains of Volcans National Park in Rwanda, 18 mountain gorilla groups reside, 10 of which can be visited by tourists. Since permits are required to visit the groups, apply well in advance, especially if you plan on visiting during a peak time. Another thing to take into consideration: since groups range in their location, visiting one group might only take a short walk through a forest, but another group might be saddled with an hour and a half trek through dense growth.



7.Kruger National Park - South Africa

Encompassing 2 million hectares and straddling two different regions of South Africa, Kruger National Park is one of the most famous places in the world to see wildlife in action. One unique aspect of Kruger is that it's a self-drive game park, meaning visitors can pick up clearly illustrated maps at every entrance to the park and navigate for themselves, taking their time and stopping whenever they want. However, if you want a guided tour, there are game walks and drives, hikes, and even mountain bike routes for exploring the park. The South African winter months, from May to September, are best for game viewing since the grass is low, making it easier to spot game.



8.Osa Peninsula & Tortuguero National Park - Costa Rica

Few places are both accessible and filled with tropical wildlife, so Costa Rica is an easy bet for some great wildlife sightings, especially if you are traveling from North or South America. Tortuguero National Park is also a sanctuary for nesting sea turtles. Although the green turtle is the primary focus, hawksbill and leatherback turtles are also tagged and counted by the conservation corporation.



9.Punta Tombo - Chubut Province, Argentina

Along with the majestic nature that visitors can experience while visiting Patagonia, there are some unique opportunities to see animals. Punta Tombo, located on the Argentine Sea in Chubut Province, is the best place to see Magellan Penguins within continental Patagonia. With more than a million and a half Magellan Penguins arriving to Punta Tombo every year to breed, you are bound to see quite a few. Though the first penguins arrive in September and stay at Punta Tombo until mid-March, the recommended time to visit for optimal viewing is after November once the babies are born.



10. Hol Chan Marine Reserve - Near Ambergris Caye, Belize

Only a short 20 minute boat ride from Ambergris Caye, the Hol Chan Marine Reserve is one of the best places to snorkel in all of the Caribbean. Numerous snorkel and scuba aficionados remark that it is incredibly rare to see such a variety of wild fish in such shallow water, since most of the reserve is only six to ten feet deep. There is an area called Shark Ray Alley famous for its number of nurse sharks in the shallow eight feet water.See More

fruit from the graviolatree is a miraculous natural canc...er cell killer 10,000 times stronger than Chemo.

The Sour Sop or the fruit from the graviolatree is a miraculous natural canc...er cell killer 10,000 times stronger than Chemo.

Why are we not aware of this? Its because some big corporation want to make back their money spent on years of research by trying to make a synthetic version of it for sale.So, since you know it now you can help a friend in need by letting him know or just drink some sour sop juice yourself as prevention from time to time. The taste is not bad after all. It’s completely natural and definitely has no side effects. If you have the space, plant one in your garden.

Treatment for black hair from white hair.

Stem-cell therapy wipes out HIV in 2 patients

LONDON: Two HIV-positive patients in the US who underwent bone marrow transplants for cancer have stopped anti-retroviral therapy and still show no detectable sign of the HIV virus, researchers said on Wednesday.

The Harvard University researchers stressed it was too early to say the men have been cured, but said it was an encouraging sign that the virus hasn't rebounded in their blood months after drug treatment ended.

The first person reported to be cured of HIV, American Timothy Ray Brown, underwent a stem cell transplant in 2007 to treat his leukemia. He was reported by his German doctors to have been cured of HIV two years later.

Brown's doctors used a donor who had a rare genetic mutation that provides resistance against HIV. So far, no one has observed similar results using ordinary donor cells such as those given to the two patients by the Harvard University researchers.

The researchers, Timothy Henrich and Daniel Kuritzkes of the Harvard-affiliated Brigham and Women's Hospital in Boston, announced last year that blood samples taken from the men — who both had blood cancers — showed no traces of the HIV virus eight months after they received bone marrow transplants to replace cancerous blood cells with healthy donor cells. The men were still on anti-HIV drugs at the time.

The men have both since stopped anti-retroviral therapy — one 15 weeks ago and the other seven weeks ago — and show no signs of the virus, Henrich told an international AIDS conference in Malaysia on Wednesday. "They are doing very well," Henrich said. "While these results are exciting, they do not yet indicate that the men have been cured. Only time will tell."

The HIV virus may be hiding in other organs such as the liver, spleen or brain and could return months later, he warned.

Further testing of the men's cells, plasma and tissue for at least a year will help give a clearer picture on the full impact of the transplant on HIV persistence, he said. Kuritzkes said the patients will be put back on the drugs if there is a viral rebound.