and housing loan rebate can be claimed together. Prashant P.Damani
Yes, both can be claimed , but in some special circumstances. For claiming HRA exemption under the I T Act, one has to pay rent. But if you have claimed that the house property purchased by is self occupied , which most of us do as the annual value of one house is taken as Nil , but even then interest deduction is allowed, how can you claim that you are paying rent.
Special Circumstance No 1
Suppose you are living in some other cities for employment purpose, and by taking loan
you have purchased/constructed a house. In that case all these following things happen together
- You may be staying in rented house and drawing HRA from your office.
- The annual value of the property shall be taken as nil on account of section
- You can claim interest from Nil value of property and repayment of principal amount can be claimed u/s 80C.
Special Circumstance No 2
You have built a house by loan and paying interest . You have given the house on rent . You are living in a house by paying rent. In this case ,