Can I avail income-tax deduction for house rent allowance (HRA) as well the home loan interest?

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Can I avail income-tax deduction for house rent allowance (HRA) as well the home loan interest?

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—Srikanth Claiming tax deduction on a home loan is not linked to claiming HRA. You can claim HRA if the flat’s rent lease is in your name. If the flat purchased by you is let out, you can claim tax deduction on repayment of the principal up to Rs1 lakh under section 80C together with other qualifying amounts. There is no cap on the interest on home loan, provided the property purchased with the loan is let out. If I sell two properties and reinvest the amount in two different new properties, will I be able to avoid capital gains tax? —Manan Mishra Yes, you can reinvest the sale proceeds of two residential properties in two different new properties in order to save capital gains tax arising out of the sale of the first two residential properties. However, you would have to ensure that the property being sold is a long-term property on the date of sale and the new property is purchased within a period of three years from the date of sale of the original house property. In case the invest