Download Form 16 from the below link :-
Form 16 Part A&B for F.Y.
Download Automated Income Tax Form 16 Part A and B -and Part B for Financial Year 2015-16 [ This Excel Utility can prepare One by One Form 16 Part A&B and Part B for Assessment Year 2016-17]
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| Form 16 Part B for F.Y. |
This
seems to be a dilemma for most tax payers. When pays rent, under the
Income tax act, he is definitely allowed to claim both HRA and home loan
benefits (interest payment and principal repayment).
Many queries
about Home loan, HRA and Tax Benefits, Let us try to evaluate various possible
situations an individual can find himself in and understand what the income tax
act permits him to do.
Situation 1: You live in your own house purchased via Home loan
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.
Situation 2: You own a house in another city
This situation
was the one faced by Suresh. He resided in Mumbai but had bought an apartment
in Ahmedabad taking a home loan. Suresh will be entitled to HRA exemption
and tax benefits on both, the principal and interest repaid on the home loan.
Situation 3: Your house cannot be occupied at this point
You have bought a
house in same city of your work by taking a home loan and you’re currently living
in same city in a rented apartment because the house is under construction. In
such a case, you are eligible to claim HRA.
In such case you
can take partial tax benefit 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.
[Download House Rent Exemption Calculator U/s 10(13A)]
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| House Rent Exemption Calculator U/s (13A) |
Situation 4: You have a house but you cannot reside in it
You have bought a
house in Surat taking a home loan and now you
aren’t residing in it but are living in a rented apartment in Surat 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.
Situation 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.
