Claiming HRA, interest rate deduction on home loan

I live in Gurgaon and pay a rent of Rs 30,000 per month. I have an HRA of 25,000 and my basic salary is Rs 1,00, 000. I have bought a house in Bangalore as my parents live there. I took a home loan to buy the property and am paying interest on the same. Can I reduce tax burden by claiming both the HRA and interest rate deduction on my home loan?

The house rent allowance is part of the CTC. HRA is not tax free unless you are actually paying rent for your place of residence. The deduction for HRA can be claimed by providing your rent receipts to your employer.

We have two tax benefits thanks to a home loan. The EMI of a home loan has two components: principle and interest. Interest is deductible upto 2 lakh, as part of the 80 C bracket of Rs 150 k.

There is a situation in which you are living in a rented accommodation and getting HRA. At the same time, you may have a flat purchased on a home loan for which you might be paying EMI.

If you have purchased a home on loan but live in rented accommodation, you can claim a deduction for HRA and deduction for principle and interest. It doesn't matter whether your property is in the same city or different, because it doesn't matter.