2nd Home Loan

POSTED BY vij ON September 10, 2012 11:36 pm COMMENTS (5)

I had shifted from Delhi to Bangalore 3 years back. I have a house in Delhi, which i have given on Rent. For the Delhi house, i had taken the loan from LIC which i am going to close this month

Sometime back i have purchased a flat in bangalore and had taken loan around 50lakh for the same. Currently i am staying in some other flat on rent.

One of my close relative recently got transferred to bangalore. The flat which i have purchased, i have given to my relative to stay and i am not taking any rent from them. I will continue to stay on rent.

Queries –

1) My EMI is around Rs 50000 per month. For the first year (first 12 months), the interest portion would be around 5 Lakh and the principal portion would be around 1 lakh. Can i get the income tax benefit for entire interest portion of Rs 5 Lakh ?

2)  I am paying the rent around Rs 10000 per month. Can i continue to avail the income tax benefit under HRA ?

 

Thanks very much in advance

 

 

 

 

 

5 replies on this article “2nd Home Loan”

  1. vij says:

    Thanks Ashal again for the answer, so the bottom line is that there is a need to declare the notional rent on Bangalore house.

    Yes, i understand that your replies were for the Bangalore property and that was the reason for asking the query about Delhi house rental income

    Thanks

    1. Dear Vij, if you are earning any rental income from Delhi property, declare the same. In case Delhi property is not on rent, no need to declare.

      Thanks

      Ashal

  2. vij says:

    Thanks Ashal for your response,

    for my bangalore flat, i have given it to my relative and i am not getting any rent out of it. So, i can claim benefit on the full interest amount of Rs 5 lakh, right ?

    one more thing, for my Delhi house, since i will be closing the loan this month, so from next month onwards, i need to show only the rental income from the house, right ?

    1. Dear Vij, please read my reply again. I did not answer for delhi house anything. I said only for banglore house. To claim full 5L Rs. interest, you need to declare notional rent on this property.

      Thanks

      Ashal

  3. Dear Vij, Yes is the answer. You can claim both benefits, HRA for the property rented by you for yourself & Interest benefit for your own property.

    Please do note in case of your own banglore property, if you declare it self occupied, the benefit ‘ll be limited to just 1.5L Rs. interest but in case you declare it on rent, rental income ‘ll be added to your income but in this case full 5L Rs. interest ‘ll be available for set off.

    Thanks

    Ashal

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