Dual Tax Exemption Optimizer (HRA + Home Loan Interest Simultaneous Claim)
Evaluate simultaneous income tax claims for House Rent Allowance (Section 10(13A)) and Home Loan deductions (Section 24(b) & Section 80C) with legal compliance rules.
Adjust Parameters
Rented Residence & HRA Inputs
Annual Basic: ₹9,60,000
Owned Property & Home Loan Deductions
Eligible for deduction under Section 24(b) (Capped at ₹2 Lakh for self-occupied).
Principal repayment eligible within overall ₹1.5L Section 80C limit.
Total Tax Deductions Claimed: ₹5,64,000 (Saves ₹14,664/month)
Legally Fully Allowed: The Income Tax Act fully permits claiming HRA for a rented home in your work location and Section 24(b) (up to ₹2 Lakh) + Section 80C for an owned home in another city where your family resides or which you cannot occupy due to employment.
Tax Regime Alert: Under the New Tax Regime (Section 115BAC), neither HRA exemption nor Section 24(b) interest deduction for self-occupied property is allowed. With a massive deduction of ₹5,64,000, you save ₹1,75,968 per year under the Old Tax Regime. Unless your total income is below ₹7.75 Lakhs, the Old Tax Regime is significantly more beneficial for you.
Income Tax Scrutiny Checklist (Keep Ready)
- Valid registered rent agreement for rented residence
- Rent receipts with Landlord PAN (mandatory if annual rent > ₹1,00,000)
- Home Loan provisional interest certificate from lending bank/NBFC
- Proof of ownership / possession letter of owned property
- Employer appointment/deputation letter confirming your employment location
Dual Tax Exemption Statutory Rules & Computation
Transparent mathematical formulas and assumptions used across our financial engines.
Variables & Legend
Step-by-Step Calculation
- Calculate Section 10(13A) HRA Exemption:
HRA = min(Actual HRA, 50%/40% Basic, Rent - 10% Basic)Derive allowable HRA tax relief under Rule 2A of Income Tax Rules.
- Calculate Section 24(b) Interest Relief:
Sec 24(b) = min(Annual Interest, ₹2,00,000)Cap interest deduction at ₹2,00,000 for self-occupied residential property.
- Combine Total Taxable Income Deductions:
Total Deduction = HRA + Sec 24(b) + Sec 80C PrincipalCompute the combined reduction in gross taxable income under the Old Tax Regime.