I’ve 2 home loans from this year with following details –
1) 1st house loan – EMI – 20000 (approx Interest payment per yr of 1.8 lakhs). this house is on rent and I show rental income (3.6 lks) in returns.
2) 2nd house loan – EMI – 53000 (approx interest payment per yr of 6.0 lakhs). this house is self occupied.
What will be my overall limit for Interest payments for both home loans. For 1st house I understand I’ll be able to claim 1.8 lakhs as i’m showing rental income, for 2nd house – will it be 6 lakhs or 1.5 lakhs?
What is the best way to plan to get maximum gains. since i’ve now moved away from rental house, so will not be able to claim HRA benefits also 🙁
One reply on this article “Income Tax Rules on home loan interest payments”
Dear Sandeep, as the 2nd house is self occupied, the maximum interest benefit to is limited to 1.5L Rs.