Is it possible to claim tax benefit for both home loan and HRA?

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?

Asked by : Rajendra - Mysuru | 40 Views

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.