8. Simultaneous HRA and Home Loan Benefits

One can claim HRA benefits and simultaneous home loan benefits except in the following situations.

1) You are living on rent and the home on which the loan is applicable is in another city or too far to reside and work.

2) The house should not be under construction.

Though the law is not exactly black and white on these issues.

Sandeep Shanbhag, Director of Wonderland Consultants, a Mumbai-based Tax Planning and Financial Consultancy says, “The taxpayer may own any number of flats, either in the same city that he works in or anywhere else in the whole of India or for that matter abroad, but that in no way influences the HRA deduction that he is entitled to.", as quoted in The Economic Times.

9. Your family can reduce your tax

If you live in your parents' house, you can pay up to 3.57 Lacs a year as rent and up to 7.15 Lacs for senior citizens over 80. This is beneficial if they don't already have taxable income.

You can also get a deduction of up to 3,000 from your gross income when interest is earned on investments made in the name of your children.

The limit is 1,500 per child for a maximum of two children.