3. Home not ready for use
Let us say that you have a home in one city for which you have taken a home loan and you are residing on a rented property in the same city because your home is not ready for use, then in such a case you are entitled to both tax benefits on principal repayment and interest payment on home loans as well as the HRA benefit. However the claim of tax benefits on home loans can be made only when the home is ready for use in that financial year and once the home is ready to live, the HRA benefit stops.
4. Home not fit to reside
Suppose you take a home loan to buy a house and it is also ready for use but somehow you are unable to reside in it due to genuine reasons like the home is at a considerable distance from your work place. Therefore you take a rented house near the office, so under such a situation also all the benefits can be availed by the individual. However your employer might deny giving an HRA benefit since both houses are in the same city.
5. House given on rent
There may be a situation that you have got the house for which you had taken the home loan but instead of using it yourself, you have rented it out and you continue to reside on a rented house then you can claim all the tax benefits and the HRA. But it should be noted that rent received by you is considered as your taxable income.
Therefore one can avail both tax benefits on home loan and HRA provided he satisfies particular conditions.