Manager-Accounts & Audit
329 Points
Joined January 2012
As per my knowledge, there is no restriction to claim HRA & HL interest even when the purchased flat is in the same city.
Because, for claiming HRA, the requirement is only the "Proof of rent paid". Also, for claiming HL interest (Loss on House property), the requirement is the "Proof of interest paid on HL".
The provisions of the Act have not given any special restriction like the owned property should not be in same city.
There are relevant case laws available in this favour.