Rebate for HRA and deduction for housing loan interest

[udit gupta]

What is the rule if a employee wants rebate both HRA and housing loan interest.

1. If he has taken housing loan in Delhi and living in Gurgaon.
2. If he has taken housing loan in Gurgaon and living rent in Gurgaon.

Please advise what is the responsibility of employer.

[CAGOPALJI AGRAWAL]

Employer can not allow both deductions under the cirmstances stated i..e living in Gurgaon in rented place and self occupying the house at Delhi or vice versa.

AI Summary

HRA and housing loan interest: employer must not permit both deductions where employee occupies a loan-financed home while renting elsewhere. An employee cannot simultaneously claim House Rent Allowance (HRA) and a deduction for housing loan interest when the employee is self-occupying a loan-financed dwelling while residing in rented accommodation elsewhere; employers must not permit both benefits for overlapping periods.