Download Form 16 from the below link :-

Form 16 Part A&B for F.Y.

Download Automated Income Tax Form 16 Part A and B -and Part B for Financial Year 2015-16 [ This Excel Utility can prepare One by One Form 16 Part A&B and Part B for Assessment Year 2016-17]

Form 16 Part B for F.Y.

This seems to be a dilemma for most taxpayers. When pays rent, under the Income tax act, he is definitely allowed to claim both HRA and home loan benefits (interest payment and principal repayment).

Many queries about Home loan, HRA and Tax Benefits, Let us try to evaluate various possible situations an individual can find himself in and understand what the income tax act permits him to do.

Situation 1: You live in your own house purchased via Home loan

You have taken a home loan and residing in the house purchased with it. Since you are residing in your own house, you will not be able to claim HRA. However, you will be able to claim tax benefits on both, the principal and interest repaid on the home loan.

Situation 2: You own a house in another city

This situation was the one faced by Suresh. He resided in Mumbai but had bought an apartment in Ahmedabad taking a home loan. Suresh will be entitled to HRA exemption and tax benefits on both, the principal and interest repaid on the home loan.

Situation 3: Your house cannot be occupied at this point

You have bought a house in the same city of your work by taking a home loan and you’re currently living in the same city in a rented apartment because the house is under construction. In such a case, you are eligible to claim HRA.

In such case you can take partial tax benefit on the home loan, you can claim tax benefits only for your principal before the completion of your house.
Once your house is completed, you can claim tax benefits on the total interest paid up.

[Download House Rent Exemption Calculator U/s 10(13A)]

House Rent Exemption Calculator U/s (13A)

Situation 4: You have a house but you cannot reside in it

You have bought a house in Surat taking a home loan and now you aren’t residing in it but are living in a rented apartment in Surat itself for genuine reasons e.g. the house that you have bought is far away from your office.

In such cases, the Income tax act permits the individual to claim HRA and home loan benefits which include both principal and interest repaid on the home loan.
Also, please note that if your house remains vacant, then you will still need to pay tax on a notional rent income.

Situation 5: You have rented your own house and currently residing in a rented house

You took a home loan and your house is now ready for occupation. You have rented the same out while you reside in a rented house. The Income tax act allows you to claim both HRA and home loan benefits.

However, in such a case, since you are the recipient of rent because you have let out your own house, that income is taxable in your hands.

The Income Tax Act treats HRA and home loan deductions under separate sections independently. The two are not interconnected to each other.


HRA is dealt with in section 10(13A) Rule 2A while home loans are entitled to tax benefits under section 80C (tax benefit on principal repayment) and Section 24 (tax benefit on interest payment) of the Income Tax Act. Hence, feel free to avail both tax benefits accordingly.