Friends
I have found on the internet a article saying that for a home loan repayment, to be eligible for tax rebate, the possession should be within 3 financial years from the loan disbursement. And that I can take tax benefit on the intrest submitted in these 3 years over the next 5 years after taking possesion (20% of the intrest amount every year, subject to a maximum of 1.5 Lakhs).
The builder is promising a possession in 48 Months (4 years) plus a grace period of 6 months. If he fails to deliver before that then a penalty clause will be applicable.
My questions:
First, If the builder is saying that possession will happen in more than 4 years after booking (practically saying it will happen close to 5 years from now, i will get a possession certificate from builder only after 5 years) , will my home loan be eligible for a Income Tax rebate under the provision of loss of income from house?
Secondly I have also been informed that if the home loan is for a second house then the total intrest on the second home loan (irrespective of the 1.5 lakh cap) will be eligible for the Tax Rebate, but a notional rent on the 1st house will be assumed as income and my net taxable income will be calculated accordingly. Is this assumption / information correct?
Please advise.