If you get HRA as part of your salary income and pay rent for accommodation you can claim both for lowering your income tax liability. If you are repaying a home loan for a residential property, income tax laws allow you to tax deduction of up to ₹2 lakh on the interest component. In this case too, you can claim both HRA exemption and the home loan deduction. Also, from this year, the government allowed treatment of two properties as self-occupied in terms of income tax implications if they are used for one’s own residential purposes. Earlier, only one property was treated as a self-occupied property and the remaining were assumed to be rent out for tax purposes.

Source: Mint October 20, 2019 03:45 UTC