I have a query regarding the tax exemption on Housing Loan Interest. Consider a scenario where I have an own house in Hyderabad, for which I am paying Interest of around Rs. 360000/- per annum. Now, if I am staying in Bangalore and taking a rented house, I assume I will be entitled to Tax exemption on HRA. However, the house in Hyderabad is not let out, because my parents are staying there. Now, will I be entitled to claim exemption of entire Interest amount, or only Rs. 200000/-? If it is only Rs. 200000/-, then under which section will it need to be claimed, because it is not self-occupied. And for let out property, entire amount excluding the rent is exempted, in this case the rent being Rs. 0/- as it is occupied by my parents.
Please advise me as to what should be the proper course of action as per the law in this case.