18 October 2010
HRA would be available in your case.
Also no deduction for interest would be allowable since the house is under construction. The interest will be allowable in the year in which construction is completed in 5 equal instalments in five years.
19 October 2010
Claiming both Interest and HRA will not be possible even after the completion of construction as the the house is in the same city. You need to demonstrate that you are not able to occupy your house due to your employment needs.
However there may be one situation in which you can claim both if you rent out your house and show that income in your ITR.
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