Paying rent and a home loan at the same time? You may be eligible for a double tax break

Taxpayers paying both rent and a home loan may claim House Rent Allowance (HRA) exemption and home loan interest deduction under Section 24(b) simultaneously.

HRA exemption requires receiving HRA from an employer and paying rent for a house not owned by the taxpayer.

Home loan interest deduction is available for interest paid on a loan for a self-occupied or let-out property.

Claiming both benefits is legal if the taxpayer meets the conditions for each separately, such as living in rented accommodation while owning another property.

The taxpayer must not claim a deduction for the same expense twice; rental income from a let-out property is taxable.