Friends,

I have been reading up a lot about Income Tax saving from Second property, however i believe my own situation needs specific clarification

Please let me elaborate.

I live in a Company leased Accommodation in Mumbai. Amount Deducted from my salary is 22000 p.m. However, rent paid by company is added to my Form 16 as Perk(hence i pay 30% tax on that). I have the option of entering into individual contract with Landlord and claim HRA.

I solely own a house in Ahmedabad which is clear of any loan. My Parents-In-law are living in this house today.

I’ve bought another house in Ahmedabad thru a joint loan. The second house will eventually be occupied by my In-Laws. Thus making my first house un-occupied.

Now in this case, how can i maximize my Income Tax Savings.

1) should i opt for HRA instead of CLA (whatever savings it can bring)
2) Do i have to have a Loan running on my First House before i can claim unlimited interest deduction for my second home?
3) And suppose i start a Loan for house repairs and renovation on my first house, what is the maximum Interest deduction allowed for both of us.

BTW for me and my wife 80C limit is always exhausted by PF deduction, LIC premiums and Tution fees.

Hoping to get clarity finally!!!

Thanks in Advance..