- Ideally the house should be located at some other place other than the place of profession. As you have mentioned the house has been let out, the entire interest liability on home loan will be setoff with rental income. In such a scenario, you can claim HRA exemption alongwith interest benefit on housing loan. Even if the house is self occupied, you can claim the benefit of HRA exemption alongwith interest benefit keeping in view the practical difficulty. In such a case, interest upto Rs. 2 lacs will be setoff. If you are opting alternative tax scheme then no benefit of HRA exemption and interest benefit would be available. It is better to keep the owned house property on rent to avoid any litigation.
For detailed discussion, you may contact telephonically.