Can a Taxpayer claim both HRA and deduction for Interest paid on Home Loan?

HRA House Rent Allowance

Can a Taxpayer claim both HRA and deduction for Interest paid on Home Loan?

YES, provided you are not living in your own house. In other words, if the taxpayer is working in one city where he lives in a rented house, and his own house is in a different that could be occupied by his parents or rented out.
But the answer can be a big NO if his rented house and own house are in the same city. In cases where the taxpayer is living in his own house or, if he does not pay rent for accommodation, then the HRA is fully taxable (i.e., the taxpayer cannot claim the HRA exemption according to Section 10(13A) of the Income-tax Act.

Special Case:
1) If you are staying with your parents, then you can claim HRA exemption by showing that you pay rent to them. In such a scenario, the taxpayer must have proper documents like rental agreement, rental receipts, and records of rent-paid transactions.
2) Any rent paid to the spouse can also be claimed under HRA exemption provided there is documentation to prove that the arrangement is genuine.

What if your employer is not providing a house rent allowance?
If you are making payments towards rent for residential accommodation but do not get HRA from your employer, then you can claim the deduction for rent paid under Section 80GG of the Income Tax Act.

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