I am 29 years, work in Mysuru and stay in a rented apartment. I have availed a home loan and bought my own apartment in Belagavi where my parents stay.I work for a reputed Company and get HRA as part of my salary package. Is it possible to claim tax benefit for both home loan and HRA?
HRA and home loans are part of two different income tax sections. You can very well claim HRA exemption under Section 10(13A) as you are staying in a rented apartment and deduction on interest on home loan as you own a house in a city other than your current residing city and presently you are in a rented accommodation.You get tax benefits on Home loan (EMI) principal under Section 80C up to INR 1.5 Lakhs a year. You also get tax benefits on Home loan (EMI) interest under Section 24 up to INR 2 Lakhs a year.