HRA and Deduction on Home Loan
You live in a rented accommodation since your house is too small for your needs
Raghav lives in a rented house in Noida since his own office, son’s school and his wife’s office are in Noida, He has his own house on the outskirts of Delhi which is quite small and also lying vacant. He is paying interest on the loan on his own house.
Raghav can claim:
- HRA for rent he pays for the house in Noida,and
- Deduction on interest up to Rs 2,00,000 on the home loan
You live in a rented house; your own house is also let out
Neha recently bought a flat in Indore, though she lives and works in Bangalore. She has no plans of returning to Indore in the next five years so she gives that flat on rent. She lives on rent in Bangalore.
Neha can claim:
- HRA for the rent she pays for the house in Bangalore and
- Claim the entire interest she pays during the year on the home loan