Hi Sir,
I am having an outstanding housing loan of 6 lacs and around 80000 as interest i am paying and showing this as tax exemption in IT.
Now, I am planning to get 2nd home loan which will surely cross year interest as 2.5 lacs.
My question is:
1. I can show the tax exemption benefit for this 80000 + 2.5 lacs?
2. Or only one can be shown to IT. If yes can i show the 2.5 lacs which is higher amount and which will be my self occupied?
3.What are the impact of buying 2nd home loan? is it beneficial from Tax exempt point of view in my case atleast?
2 Answers
Hi,
1 - No. The maximum amount that can be claimed (both home loans put together) can be up to Rs 2 lakh only in a FY.
2 - The maximum limit is Rs 2 lakh only. Are you planning to give one house for Rent? Or both will be owned as Self-occupied?
3 - Kindly do not buy a Property just to save some taxes.
Kindly read :
Thanks for your reply sir. I am planning to have old house(housing interest 60000) for my parents, and new house(housing loan of 2.5 lacs interest) for myself. Shall i show these two as self-occupied then?
For FY 2018-19 (AY 2019-20), you need to show one of the two properties as 'Deemed let out' one.
From FY 2019-20 (AY 2020-21), an individual can show two Self-occupied properties.
- Currently, income tax on notional rent is payable if one has more than one self-occupied house. No tax on notional rent on Second Self-occupied house has been proposed. So, you can now hold 2 Self-occupied properties and don’t have to show the rental income from second SoP as notional rent.
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