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Can I Claim Both HRA and Home Loan Benefits? Conflicting Advice from CA and Colleague

TaxGuru
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Summary

AI-Generated
  • A common myth debunked: you can claim both HRA exemption under Section 10(13A) and home loan benefits under Sections 24(b) and 80C simultaneously.
  • This applies if you own a home in one city but rent in another, or if your owned property is let out while you live elsewhere.
  • Anjali's case illustrates potential tax savings of approximately Rs 3,72,000 by leveraging both deductions under the old tax regime.
  • However, taxpayers must ensure genuine circumstances and maintain proper documentation to avoid scrutiny from the tax department.

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