I recently came across a query, can I claim HRA and home loan both. Yes, under certain conditions, you can claim both HRA and a home loan interest deduction simultaneously but only under the old tax regime. By claiming both at once, you can dramatically lower your taxable income. I have shared more information on it below.
Can I Avail Both HRA and Home Loan?
Under some circumstances, Indian taxpayers are eligible to avail both the Housing Rent Allowance and the interest paid on their house loans. Even if both the houses are in the same city, HRA and home loan interest can be claimed.
A salaried individual who receives HRA and resides in a rented accommodation can claim the tax exemption on HRA under Section 10(13A).
At the same time, they can claim a deduction for home loan interest under Section 24(b) for a property that they own, whether it’s self-occupied (up to Rs 2 lakh per annum) or rented out (with no upper limit, though loss offsets are capped at Rs 2 lakh).
HDFC lists three common scenarios where both benefits can be availed together:
You can claim HRA on the rented home where you live for work, and simultaneously claim the home loan interest deduction on the property in the other city.
If your self-occupied property is still under construction while you’re residing in rental housing, you may claim both HRA for the rented stay and home loan interest once construction is complete.
If you live in a rented property and have rented out your home on loan, you are eligible for HRA exemption on your rent and can also claim the full home loan interest deduction for the let-out property.
However, if you live in the same property for which you are receiving HRA and servicing a loan, you cannot claim HRA. I hope this helps you understand can I claim both HRA and home loan.
Get Help with Claimng HRA and Home Loan in Your Tax by Professional at NoBroker.
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- When your owned property is in a different state and you reside in another state in a rental accommodation
- When your property is under construction and you have shifted to a rented accommodation for a certain period of time.
- If you own a house but are unable to move into it despite being in the same state. This happens when the employee lives far away from the workplace and decides to rent an accommodation close to the workplace.
- When you rent your own house and live in a rented accommodation yourself. This could also be a case when your self owned property is unable to accommodate you.
Can I claim HRA and home loan both?
Prerna
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2021-04-30T18:59:31+00:00 2025-01-13T17:18:30+00:00Comment
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