DEDUCTION OF INTEREST OR HRA

[Guest]

A person owns a house at Ludhiana for the construction of which he has taken housing loan. He works at Chandigarh.He has taken a house at rent at chandigarh. From Monday to Friday he stays at Chandigarh in rented house and on Saturday and Sunday he comes to Ludhiana and stays at owned house. Now, can he claim deduction for HRA for rent paid for House at Ludhiana and at the same time deduction of interest on housing loan for House at Chandigarh. I think, the law is silent on this issue.

AI Summary

Claiming HRA and Home Loan Interest Deduction: Possible Under Certain Income Tax Act Sections, But Conditions Apply. A person inquires about claiming both House Rent Allowance (HRA) for a rented house in Chandigarh and interest deduction on a housing loan for a self-owned house in Ludhiana. Responses vary: one suggests both claims are possible under certain sections of the Income Tax Act, while another warns that typically only one can be claimed, potentially requiring an appeal if both are pursued. Additional considerations include the location of family members and travel expenses. The consensus leans towards the possibility of claiming both, provided specific legal provisions are met.