Section 10(13a) and 24(b) of the income tax act,1961

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A.Dhilipkumar (Querist)
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19 January 2018 Sir,
I am having one self occupied house property which is being used by my parents on which i am paying the housing loan interest and principal . .I am staying in a rental house in the same city where i am working, also my own house is in the same place.
My query is whether i am eligible to claim both the HRA exemption u/s10(13A) and housing loan interest repayment u/s 24(b) , principal payment uu/s 80(c).
Can i get some supporting case laws.
Thanks | Regards
Dhilipkumar

Renu Goyal

Renu Goyal (Expert)
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19 January 2018 Yes you can claim all the three but there should be proper reason for not living in your own house.

A.Dhilipkumar

A.Dhilipkumar (Querist)
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20 January 2018 Sir/ Madam...
Shall i get a supporting caselaws, ITR NO OR SPECIAL JUDGEMENTS for the issue.
Tks
Dhilipkumar

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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23 July 2025 Yes, you can claim both:

HRA exemption under Section 10(13A), and

Home loan deductions under Section 24(b) (interest) and Section 80C (principal),
even if your own house is in the same city, provided there is a valid reason for staying in rented accommodation, such as:

Own house is far from the workplace, or

Not adequately connected by public transport, or

Family (parents) are occupying your house and you are staying separately for work purposes.

✅ Judicial Precedents / Case Law Support:
Here are important case laws supporting this claim:

🧑‍⚖️ Munish Kumar v. ACIT [2012] 52 SOT 93 (Delhi - ITAT)
The assessee owned a house in the city but stayed on rent due to being far from the workplace.

Held: Entitled to both HRA exemption u/s 10(13A) and deduction of interest on home loan u/s 24(b).

🧑‍⚖️ ACIT v. Prakash L. Shah [2013] 33 taxmann.com 400 (Mumbai - Trib.)
Assessee was residing in rented premises while letting out the owned property to others.

Held: Claiming HRA exemption and home loan interest both was valid.

🧑‍⚖️ B. Sumathi v. DCIT [2014] 41 taxmann.com 300 (Chennai - Trib.)
Own house occupied by family, but employee stayed in rented premises.

Held: Valid claim of both HRA and housing loan deduction, since reasons for not residing in own house were justified.

🧑‍⚖️ CBDT Circular (Indirect reference):
Though no specific CBDT circular denies such claim, the CBDT has clarified in various contexts that if the taxpayer justifies inability to occupy self-owned house, the benefits may be claimed simultaneously.

✅ Summary:
Deduction Section Eligibility in your case
HRA Exemption 10(13A) ✅ Yes – if proper justification is available
Housing Loan Interest Deduction 24(b) ✅ Yes – up to ₹2,00,000 for self-occupied
Principal Repayment Deduction 80C ✅ Yes – up to ₹1,50,000

📌 Important Notes:
Keep rent agreement, rent receipts, and reasoning documentation ready in case of scrutiny.

Avoid any rent transaction with parents or spouse, as it may get disallowed.

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