House rent allowance and housing loan

Related provisions under the Income Tax Act, 1961. All relevant sections are mentioned below:

Section 10(13A) requires 2 conditions for claiming HRA exemptions:

1.      The residential accommodation occupied by the assessee should not be owned by himself; and

2.      The assessee has actually incurred expenditure on payment of rent in respect of the Residential accommodation occupied by him.

Annual Value of Self Occupied Property as per Section 23(2):

1. property is in the occupation of the owner for the purpose of his own residence; or
2. cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him, the annual value of such house or part of the house shall be taken to be NIL.

Deduction for interest as per Section 24(b):

1. where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital

 So we can conclude that if a person has a house property and he is also paying the rent for any house property in the same city but at different place then he will be able to get HRA exemption u/s 10(13A) and Interest deduction u/s 24(b)