DEDUCTION OF INTEREST OR HRA

[manoj gupta]

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

HRA vs Interest Deduction: concurrent claims possible where employment residence differs and owned house is self-occupied.
Whether an employee may claim House Rent Allowance for a rented workplace residence while also claiming interest deduction on a housing loan for an owned house at another location depends on treating the owned house as self-occupied when employment requires residence elsewhere; commentators differ on whether both benefits may be claimed concurrently, and practical factors such as family residence, distance, documentary support for travel and accommodation, and assessing officer scrutiny are material.