How can I claim tax benefit for more 3 housing loans ?

POSTED BY suhas_patil ON July 27, 2014 1:53 am COMMENTS (2)

Me and my father had taken a Joint home loan for construction of our house in Kolhapur Maharashtra from LIC HSG Finance in March 2007 ,my father was applicant since he owned the land & me as Co applicant. I was paying the full EMI and availing the Tax benefit for same.

We had closed this home loan in Nov 2011.The property is owned by my father and currently my parents are staying in it. I do not show any income from this property now.

I took my 2nd home loan from LIC HSG to buy a flat in Pune in Sept 2010. This loan is currently running and the property is let out. This property is owned by me and I show the rental income in my income tax filling.

I am planning to take the 3 rd home loan now in Bangalore to buy a flat. I will be staying in this house. Can I claim the tax benefit for the 3rd property. ?

What are the tax implication for me on all above properties.

2 replies on this article “How can I claim tax benefit for more 3 housing loans ?”

  1. Ashish Garg says:

    Hi,

    For property 1 – There is no loan running and also property is not in your name so no tax benefit applicable here

    For property 2 – Loan is running and is let out. Since you are showing income from this property, you can claim exemption on full interest paid on home loan and upto 1.5L principal re-payment every year till the loan is running and property is let out.

    For property 3 – Once you buy and move into the unit. It will be property for self use. If Loan is running and you will be staying, you can claim exemption on interest paid upto 2 lakh on home loan and upto maximum of 1.5L principal re-payment (on all loans put together) every year till the loan is running.

    Ashish

  2. Credexpert says:

    Dear Sir,

    Under Section 24 of the Income Tax Act, you can claim deduction for all interest paid on home loan up to Rs. 2,00,000 (increased from Rs. 1,50,000 as per the Budget 2014).

    Under Section 80 C, you can claim deduction for the principal amount repaid on your home loan during the year up to a limit of Rs. 1,50,000 (increased from Rs. 1,00,000 as per the Budget 2014). Please note that the total deductable income under 80 C is Rs. 1,50,000.

    Regards,
    Credexpert

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