I am planning to buy a home in partnership with my friend in Bangalore. So both of us would be co-owners in the ratio 50:50
We would be the co-borrowers of the loan as well in the same ratio.
a.) From what I read, both of us would be able to claim tax benefits – maximum of 1 lakh on principal and 1.5 lakhs on the interest component. Is this correct?
b.) We are planning to rent out the new property. Since I stay in a rented house in bangalore, can I continue to claim HRA?
c.) Will the rent obtained automatically go into the taxable income category or any deductions can be shown due to the housing loan re-payment?