Hello Srikanth,
I have two housing loan. One of the house is where I am residing (old loan) and has been already declared as part of investment declaration during start of financial year in the company. Another housing loan has been started during mid year and the house is still under construction. Both are located in same city as well. My question is,
- Can I have tax benefit of the EMI payed for second loan as well?, if not,
- Can I re declare the new loan instead of old one, as I am currently paying more EMI for the new one for the current financial year?.
- How can we declare both property, as I don't have any income coming from the new house, since it is under construction.
1 Answers
Hi,
1 - As the property is still Under-Construction, you can not claim tax benefits on second home loan.
2 & 3 - Once you get the possession of the new property, you have the choice to declare which property as Self occupied and which one as Let out. You may declare the one with high interest out-go as Let-out one.
Kindly go through below articles;
http://www.relakhs.com/under-construction-house-how-to-claim-tax-deduction-on-home-loan-interest-payments/
http://www.relakhs.com/self-occupied-property-tax-hra-home-loan/
http://www.relakhs.com/understanding-tax-implications-of-income-from-house-property/
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