Originally posted by : Tanuj Oberoi

i have my own house in ludhiana. but for job i had to come to chandigarh. In chandigarh i lives in rented house. I want to know can i claim hra exemption in income tax act ( Yes). Another question i want to ask i am paying intrest  on loan to bank for construction of my house. can i get the exemption of intrest of loan borrowed for construction of house in income tax act(Yes). In income tax is there only exemption is availabe for interest payment or there is exemption for principal payment( yes under sec 80C upto 1Lac).