Are there any Tax benefit on Loan against Property ?

POSTED BY Raja ON July 17, 2014 10:49 pm NO COMMENTS

I am a salaried person having an existing home loan for a self occupied property. This year I have taken a top up loan against the same property (loan against property). My question,

1. While I get tax benefit on home loan under 80C and 24, is there any kind of tax benefit on the loan against property?

2. If there is a tax benefit on the LAP loan, how much is it and under what conditions can we show it under deductions? (I have heard that it can be max 30,000 only on the interest part but not sure on this)

3. I have also heard that business people can claim deduction on the entire interest of LAP loan provided they show that the loan amount is used for business improvement purposes. Is there any such set off available for salaried people?

4. Currently I have put the LAP loan amount in FD. Will I have to pay income tax on the interest obtained on the FD or can that be set off against the interest I will be paying on the LAP loan?

I hope an experienced CA in these matters can put some views on this

Thanks

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