An individual doing a job and has only salary income.
He was working in a multinational company in Bangalore and lives in a rented house there.
He purchased flat in Delhi for himself and family after taking loan from Bank, but he was still staying in Delhi on rented house.
Need to know in the above scenario, whether the client can take both HRA exemption and deduction of the interest on loan paid.
Also can he claim the deduction on repayment of Principal loan amount.
I am not sure whether i am correct or not, I read somewhere that we can't claim both HRA and deduction of Interest paid on Home loan. Thus need to get this confirmed.
If the pace of employment and home town is different then both the HRA exemption and Interest on home loan can be claimed. Since in your case the employee's home town is in delhi and for the purpose of employment he is in bangalore, he can claim both the benefits.
CAclubindia
