Can You Claim Both Home Loan Interest and HRA Deductions? Here's What You Need to Know

Can we take a deduction of the home loan interest component as well as HRA deduction?

---

Certainly! You can avail deductions for both the home loan interest component and House Rent Allowance (HRA). These deductions are available under different sections of the Income Tax Act, so you may be eligible to claim both if you meet the specified criteria. It's advisable to consult with a tax expert or financial advisor to ensure you are maximizing your deductions within the legal framework.

Yes, we can consider both deductions as HRA and Interest on Housing Loan (U/S 24), provided the employee produces a valid possession letter for the said property.

I am of the opinion that deductions for HRA are admissible as per rules if one is residing in rented accommodation. If residing in an owned house, then HRA is fully taxable. When one is paying a house loan, it implies that he is residing in his own house. It may be possible if the loaned house and residence are in different cities.

Thanks,

V K Gupta

I think it is not possible to claim both HRA and interest on a housing loan simultaneously. In case you have not obtained possession, then you can do so, or if both houses are in different cities.

Thank you all for your reply. But if an employee has bought a flat and has the possession certificate, and this flat is vacant while staying in a rented flat elsewhere, can we consider both components?

In this case, the employee can claim both home loan exemption as well as HRA deduction, but he has to show rent receipts. To claim HRA, only two conditions have to be fulfilled:

a) The residential house is not in his own name.
b) He has to pay rent.

If the aforementioned conditions are satisfied, the employee can claim HRA. For claiming the house loan interest, he only needs a certificate from the interest payee.