medium_image.webp

small_image.webp

thumbnail_image.webp

image.webp

How to Apply for a Personal Loan: Step-by-Step Guide | Fi Money

Personal Loan Documents Required in India: Eligibility & Process

credit-underwriting-process.jpg

Role of AI in Credit Underwriting: Unlocking Faster, Fairer Lending

If your employer offers you an HRA exemption, then here's how you can take an HRA exemption alongside your home loan EMI tax exemption.

How to Claim HRA and Home Loan Tax Exemptions

Home Page

Guides

Personal Loans

"How to Claim HRA and Home Loan Tax Exemptions"

Ulfath Joad

Get your loan basics covered: Think interest rates, clearing debt, etc.

<p>
    House Rent Allowance (HRA) and home loan repayments both offer tax benefits to taxpayers. If you receive HRA as a part of your salary and are also repaying a housing loan, then this article should clear the air on the subject.
   </p><h2>
    <strong>
     How to claim an HRA exemption?
    </strong>
   </h2><p>
    As per section 10(13A) of the Income Tax Act, 1961, the least of the following amounts can be claimed as an exemption if you stay in rented accommodation:
   </p><ul role="list">
    <li>
     The actual HRA received
    </li>
    <li>
     Annual rent minus 10% of your annual salary
    </li>
    <li>
     50% of your basic salary if you live in a metro city or 40% if you live in a non-metro city
    </li>
   </ul><h3>
    <strong>
     HRA calculation:
    </strong>
   </h3><p>
    You can use this
    <a href="https://fi.money/calculators/hra-calculator">
     HRA calculator
    </a>
    to calculate your
    <a href="https://www.youtube.com/shorts/5iCMT10J_6o">
     HRA exemption.
    </a>
   </p><h2>
    <strong>
     How to claim home loan deductions?
    </strong>
   </h2><p>
    If you have availed of a home loan, you will be paying off the principal and the interest component as home loan EMIs. You can claim tax deductions on this as follows.
   </p><h2>
    <strong>
     Can You Claim HRA and Home Loan Tax Benefits Simultaneously?
    </strong>
   </h2><p>
    The short answer is yes. You can claim the tax benefits on HRA and home loan repayments, subject to different conditions in different scenarios as follows.
   </p><h2>
    <strong>
     Use your HRA and Home Loan Repayments to Save Tax
    </strong>
   </h2><p>
    If you receive HRA as a part of your salary and are also repaying a home loan, you can save taxes as outlined above. Furthermore, mutual funds like Equity Linked Savings Schemes (ELSS) can also help you save tax while simultaneously earning market-linked returns. Invest in these mutual funds or other funds of your choice with Fi Money commission-free.
   </p><h2>
    <strong>
     Frequently Asked Questions
    </strong>
   </h2><h3>
    <strong>
     Can you claim your mortgage on your taxes?
    </strong>
   </h3><p>
    Yes, the amount of your home loan or mortgage you repay during a given financial year can be claimed as a deduction from your total taxable income. The principal component of your home loan EMIs is deductible up to ₹1.5 Lakhs per year u/s 80C of the Income Tax Act, 1961, while the interest component is deductible up to ₹2 Lakhs per year u/s 24 of the Act.
   </p><h3>
    <strong>
     What kind of credit score do I need to get a loan for a house?
    </strong>
   </h3><p>
    To be eligible for a home loan, it is advisable to have a credit score of 750 or more. The higher your credit score, the more favourable the terms and conditions of your home loan.
   </p>

How to Claim HRA and Home Loan Tax Exemptions | Fi Money

Fi.money