How can we claim the Tax Exemption from the second home where interest is more ?

POSTED BY sekar.sudha@gmail.com ON February 6, 2015 12:41 pm ONE COMMENT

Hi,

We have a Flat in chennai for 28L for which we are paying an emi of 32k/month. claiming an Income Tax Exemption in 80 C and 24b and HRA also as we have rented out for 8k/month. We plan to take second home loan in Bangalore for 40Lac.

How can we claim the Tax Exemption in the second one as it is a under construction and will be completed after one year only.

Could you please explain us how can we claim the Tax Exemption from the second home as interest rate of the second one will be more.

Thanks,

Sudha

One reply on this article “How can we claim the Tax Exemption from the second home where interest is more ?”

  1. ap16j55 says:

    In a real situation, if one has more than one home, there can be 3 possibilities.

    1. Stays in one rant the other
    2. Rent both
    3. Stays in both(family parents etc).

    In case of IT, first two only are acceptable.

    If one is staying in his own house, tax need not be paid on the receipts from that house/flat. But second one is deemed to be let out and tax is to be paid on receipts from the house. There is a procedure as to how the rent is calculated, even if the house is not actually let out.

    If one lets out both, the total income is taxable and there are deductions like maintenance and EMI payment.

    As regards incomplete flat, there is no tax, till the same is completed. In a similar note, no EMI deduction is available till the flat is possessed by the person.

    Trust this clarifies the point.

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