March 5, 2012 1:49 pm
I am going to preclose the existing housing loan. Would like to know about the eligibility of tax exemption u/s 24, if i go for 2nd fresh housing loan?
Dear Sadagopal, A small correction in the reply given by dear BanyanFA. As you are already holding a house. The new house ‘ll be your 2nd house & accordingly to claim Tax benefit under section 24(b), for the interest part on the home loan, you w’d have to report your actual or deemed rental income from this new house. Yes in this case of rental income, the limit of 1.5L Rs. ‘ll not be there & you may claim any actual amount you are paying as interest.
I don’t think that there would be any implications under section 24 for a second housing loan. Income Tax Act has no differentiation between first or second Housing loan.
The prepayment of housing loan principal can be used towards 80C 1 lac limit.
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