Can both spouses claim HRA benefit of respective share of total rent paid?

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Published: January 22, 2019 12:16:37 AM

Expenditure incurred on preventive health check-up for self, spouse, parents and dependent children is eligible for tax deduction of Rs 5,000 under Section 80D.

Both spouses can claim HRA benefit of respective share of total rent paid

My wife and I together pay Rs 20,000 a month as rent and the lease agreement are in both our names. Can we both claim HRA benefit?
– Srikant Manoj
Yes, there is no restriction on claiming HRA benefit by both the spouses. If you and your wife both are paying the rent then both can claim HRA benefit separately for the respective share. Total rent claimed by both of you cannot exceed Rs 20,000.

What is the way to claim income tax deduction of `5,000 for preventive health check-up?
—Gurdip Singh
Expenditure incurred on preventive health check-up for self, spouse, parents and dependent children is eligible for tax deduction of Rs 5,000 under Section 80D. Though there is no requirement for submission of any documents to claim the deduction, keep a record of the proof in case of any inquiry by the income tax authorities.

I am a salaried person and had taken a home loan on which I claim tax deduction. I also have a second home with another loan. Is it possible to claim tax benefit on the second home loan?
—Prakash Awasti
You can claim deduction of interest on both home loans but maximum deduction for a self-occupied house is `2 lakh. If the property is rented out then you can claim deduction of the whole interest amount. If the new house is vacant or used by you, you have to include notional rent. Total loss amount from house which can be set off against income is restricted to `2 lakh in a year. If it exceeds `2 lakh then the excess loss can be carried forward for next eight years. You can claim deduction for repayment of principal up to `1.5 lakh in a financial year under Section 80C .

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I have a few shares of a cooperative bank and get dividend income every year. Is dividend received by me taxable? If so, at what rate will I calculate the tax liability?
—Deepak Kumar
Dividend received from a domestic company is exempt under Section 10(34) of the Income Tax Act, 1961. Since a cooperative society is owned by its customers and thus cannot be referred as a domestic company, and also it is not required to pay dividend distribution tax on the dividends, dividend received from a cooperative bank will be taxable in the hands of the shareholder under the head “income from other sources”.

The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to
fepersonalfinance@expressindia.com

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