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Can I claim both HRA and deduction on home loan?

Can I claim both HRA and deduction on home loan?

Yes, you can enjoy both tax benefits if your employer provides you with a HRA component as part of your salary and you are repaying your home loan.

You work in a city; you are living in a rented accomodation and your bought a house in your home town

Arjun works in Gurgaon, but his wife and children live in Sonepat. He recently bought a house in Sonepat on a loan while he continues to live on rent.

Arjun can claim:

  • HRA for rent he pays for the house in Gurgaon,
  • and deduction on interest up to Rs 2,00,000 on the home loan

You live in a rented accommodation since your house is too small for your needs

Raghav lives in a rented house in Noida since his son’s school and his wife’s office are in Noida, his own house on the outskirts of Delhi is smaller and is lying vacant. He is paying interest on loan on his own house.

Raghav can claim:

  • HRA for rent he pays for the house in Noida,
  • and deduction on interest up to Rs 2,00,000 on the home loan

You live in a rented house; your own house is also let out

Neha recently bought a flat in Indore, though she lives and works in Bangalore. She has no plans of returning to Indore in the next five years so she gives that flat on rent. She lives on rent in Bangalore.

Neha can claim:

  • HRA rent she pays for house in Bangalore
  • Entire interest on the home loan fully exempt from tax

Can I claim both HRA and deduction on home loan?

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