Interest on Housing Loan & House Rent Allowance.

[SURYAKANT MITHBAVKAR]

I have Bank Loan against House Property which is in outside Mumbai. I stay in mumbai on rental basis.

Can i claim income tax exemption for Housing Loan Interest as well as House Rent Allowance.

[CAGOPALJI AGRAWAL]

Yes, you can claim.

AI Summary

Concurrent claim of housing loan interest and house rent allowance permitted; taxpayer may avail both benefits.
A taxpayer living in rented accommodation in one city while holding a bank-financed house property in another city may concurrently claim deduction for interest on the housing loan and House Rent Allowance; payment of interest on the owned property does not bar HRA entitlement.