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Yes, you can claim income tax exemption on both house rent allowance (HRA) and repayment of home loan. If you are living in a house on rent and servicing home loan on another property - even if both the properties are located in the same city - you can claim tax benefit for both.
But "this situation could be closely monitored by the Income Tax Department particularly where the amounts are relatively higher and may also disallow one of the claims if sufficient explanations are not available", says Amit Maheshwari, managing partner at Ashok Maheshwary & Associates LLP.
Mr Maheshwari cites some cases when the tax department may not raise questions: