Can we claim HRA and home loan?

The Income Tax Department deducts HRA and interest paid on the home loan. So, you might be wondering if we can claim HRA and  home loan. Well, I have good news for you regarding this question! You can claim HRA and home interest at the same in certain situations. I will tell you the key points to claim both a home loan and HRA. Can HRA and home loan be claimed together?

1. To claim both the HRA and home loan you need to rent a property in a different area and buy a property in another different area.
2. You have to provide proper evidence as to why you are renting a property in one city while paying home loans for a property located in another city.
3. It will be a win-win situation for you if you are renting a place in a city located near your office while you have a self-occupied home in a different city.
4. You cannot claim HRA and home loan interest if you are living in the same city.

I will give an example to give you a better insight on can we claim HRA and home loan. Vikash had to relocate to Bangalore for his job while his family are living in Delhi. In this situation, Vikash is paying a rent of Rs. 10000 per month and his HRA is Rs. 15,000. Vikash gets a basic salary of Rs. 40,000 per month. He has also bought a property in Delhi where his wife and children live. He pays an interest of Rs. 20,000 per month for home loan. Vikash can claim his HRA based on:

1. The HRA he gets is Rs. 15,000.
2. 40% of the basic as he has relocated in Bangalore that is Rs. 16,000.
3. If we subtract the rent he is paying from 10% of basic we get- Rs. 10,000- Rs. 4,000= Rs. 6,000.

If the exempted HRA is Rs. 6,000, the remaining HRA of Rs. 15,000 becomes 9,000. Rs. 9,000 will be considered as a part of a taxable income and this is how you claim HRA and home loan. Hope you now know the answer to the question: can we claim HRA and home loan. How to calculate HRA in income tax? What is CIBIL score for a home loan Want to avail home loan? Know the criteria via NoBroker Home Loan Eligibility Form [widget_homeLoan_checkEligibility_form]