Query on hra and multiple home loans

If u r claiming HRA in respect of rented house, u cannot be said to have self occupied one of your own house. Both r contradictory statements. 

I think both the own houses have to be treated as let out properties in this case.

In you case, yeah right, because in both the cases, it is necessary to occupy the house for which you intend to avail exemption/deduction.

You can not claim HRA since you are living in rented house in the same city. This is because if you have two ready to be occupied residential properties in the same city in your name and your still living in rented house in the same city. However you will continue to claim house loan benefits.

One of the properties will be your self occupied one and the other one will be deemed to have been let out even if it is not actually let out. On such property notional rent will be taken with reference to normal rent of similar properties in that area and you will get standard deduction of 30% for repairs and interest on borrowed capital upto actual payment.

In this regards, can we claim both loans Interest and Principle amount as deduction

HRA benefits can be availed only if you live in the rented place because you have to stay away from home due to employment and that too in a separate city...you cannot use HRA for such a tax planning as you have asked.......

and

if you stay in a rented house...you can claim one of them as self occupied...and the other deemed let out

@ Jishnu: Even after staying in a rented place, how can he claim one own house as self occupied? Once HRA is claimed as deduction, can the same person declare another house to be self occupied?