Compare claiming HRA, home loan interest, both together, or neither in the new regime. See the tax under each route and which one costs you least.
Can I claim HRA and home loan interest together?
Yes, when the facts support it. The classic case is a house in one city that is let out or lying vacant while you rent in the city you work in. There is no rule in the Act forcing a choice. What you cannot do is pay rent for the same house you live in and own.
What if my own house is in the same city?
Then it gets harder, but it is not automatically barred. If the house is genuinely too far from your workplace, or let out, both claims can stand. Be ready to explain the arrangement with a rent agreement, bank transfers, and the tenancy details of your own flat.
How much interest can I claim?
Up to ₹2,00,000 a year on a self-occupied house under section 24(b). On a let-out house the interest is not capped, though the loss you can set off against other income each year is limited to ₹2,00,000 and the rest carries forward for eight years.
Does the principal count too?
Yes, under section 80C, sharing that ₹1,50,000 ceiling with your provident fund, insurance premiums, and everything else. The calculator adds it to whatever 80C you enter, then applies the cap.
Why might the new regime still win?
Because it gives a larger standard deduction and much wider slabs. Both HRA and interest are old-regime claims, so a moderate rent and a moderate loan often add up to less than the new regime hands over for nothing. The table above shows exactly where you stand.
What proof will my employer want?
For HRA, rent receipts and your landlord PAN once rent crosses ₹1,00,000 a year. For the loan, an interest certificate from the lender and, where you claim both, the details of the house you own. Keep them: this is a combination that gets looked at.