Deduction of home loan

he can not claim deduction of interest because at the same time he is claiming for HRA. If he is another city or state and house in other city or state than he is liable for claiming interest. 

In present case…

1.Employee does not own the House in which he reside

(where he claims HRA) also

2.assuming, he actually pays Rent, he can claim HRA.

[Both the conditions of Sec. 10 (13A) are fulfilled]

For claming deduction of Interest on House Property Loan, conditions are:

1.House property which he owns (acquired through loan) is used for owner’s residence

OR

2.It can not be occupied because of the fact that due to employment etc..carried at other place he has to reside there in any house which does not belong to him.

NAV then would be NIL. (Other Place can be in the same City too).

So, in this case, employee can claim HRA as well as Interest on Housing Loan.

Same city clause wont make any difference.

You can claim both as both deal with seperate sections and are computed accordingly and does not overrule each other .

Thank you for your reply...