ITR filing: Can a salaried taxpayer claim deductions for HRA and home loan interest together?
income tax bracket, there is hardly any scope for you to save a higher amount as income tax in the new tax regime. However, the old income tax regime still allows you to claim more deductions to bring down your net taxable income and pay much lower income tax.
Among these, the deductions on home loan interest and house rent allowance (HRA) are the two prominent avenues to save taxes. However, very few salaried taxpayers claim both these deductions together despite being eligible to do so. We tell you how to claim both these deductions together and save a significant amount of income tax. Here is how these two deductions work:
Home loan-related deductions
<div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-111861414»>Section 80C: Up to Rs 1.5 lakh each financial year on account of principal repayment of home loan
Section 24B: Up to Rs 2 lakh each financial year on account of interest payment of home loan taken for a self occupied house
HRA-related deduction
Section 10 (13A): Least of the following
●HRA received as part of salary
●40% or 50% of basic salary depending on city
●Amount after deducting 10% of basic salary from actual rent paid
Home in one city but living on rent in another city
Given the job dynamics in India, it is not uncommon for many people to shift to another city either for the sake of remaining employed or for better career prospects. So, if you have taken a home loan for a house in one city but moved to another city later due to job requirements, you are very much eligible to claim both deduction on the loan and deduction on HRA.
In some cases, people
