Home loan or rent ?

I have taken a home lon for a house (occupied by my parents) in Mumbai. I have taken rented accommodation in Gurgaon (my workplace). For tax computation on my salary, my company has considered the loan and not the high rents that I pay here. What am I supposed to do? Do I need to mention the home loan details in my investment declaration or not. How do I save taxes?

As you have not rented your home in Mumbai and it is being used by family members you can claim (i)repayment of loan subject to overall limit along with [other qualifying payments] of Rs.100000/- as per section 80C. (ii) You can claim interest paid on home loan up to Rs.150000/-(it depends on year of purchase, but I guess you have taken home loan recently and therefore the dependency is not applicable).
Besides this you can claim house rent allowance and you are not barred from claiming it. (work out the allowance properly according to provisions of Income Tax act.
All this you have to claim in your Return of Income. Your company may not consider this. They want to be on safer side though there is no risk at all.
My son in Gurgaon is also facing the same problem and I took advice from a senior C.A. friend of mine for free.

Well...if it were me and I was in that situation I would be forced to try and look at the bight side.. You may be screwed now but down the road the house is your salvation and your retirement and investment.. In your old age you will be so grateful to have that house in your name and no one can boot u out....Companies always take the easy way out and look to pay the lowest amount possible because they are looking to save their money..It's possible even without the house, your company could have looked at your high rent in Gurgaon and said..wow u are paying too much and we are not going to be responsible for this high rent because it was your choice to live there and not ours so therefore we will only give you a portion of the money...Possibly the same amount they are giving you for the house allowance and you being a homeowner..What I would do to offset the company being stingy is get a room mate to make up the difference and just accept it..Dont moan and complain to your company because they will get ticked and maybe get even with you in another way down the road..hang in there you are doing fine and YES mention the homeloan on your taxes because you don't need problems down the road from falsifying records..That way you are free from worry and there is nothing better than that

The Company is correct in their decision as if you have taken a loan, then Rent cannot be considered and hence yoou would have to rightly go as per the Companys deduction