Live calculator: HRA exemption (old regime) vs home loan interest (Section 24b) + principal (80C). See if you can claim both.
| Tax Benefit | Renting (HRA) | Home Loan |
|---|---|---|
| Tax Section | Section 10(13A) — HRA Exemption | Section 24(b) + 80C |
| Interest Deduction | Not applicable | Up to ₹2L (Sec 24b) |
| Principal Deduction | Not applicable | Up to ₹1.5L (80C) |
| Max Annual Benefit | Varies (rent - 10% of salary) | ₹3.5L deduction (₹1.09L tax @30%) |
| New Tax Regime (2024) | HRA NOT available | Section 24(b) NOT available |
| Both Benefits Together | ✅ YES — if you have a home loan on a different city property and you're renting in your work city | |
Both renting and owning a home offer substantial tax benefits in the Old Tax Regime. The key is understanding the exact calculation for HRA exemption (the minimum of three conditions) and combining it with home loan interest deduction if you have both.
HRA exemption is the MINIMUM of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic salary (metro) or 40% (non-metro). You claim whichever of these three is lowest.
Yes. If you have taken a home loan for a house that is rented out or under construction or in a different city, you can still claim home loan interest deduction under Section 24(b) up to ₹2 lakh, while also claiming HRA for the rent you pay in your work city.
No. HRA exemption, LTA, and home loan interest (Sec 24b) are not available in the new tax regime. The new regime has a flat standard deduction of ₹75,000 (from FY 2024-25). For those with high rent and large home loans, the old regime usually saves more tax.
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