second housing loan – EMI’s tax treatment

POSTED BY raja venkat ON July 29, 2013 9:51 pm COMMENTS (2)

I, a lady tax payer, have availed a Housing Loan from my employer in 2003.

This is a self-occupied by me & my husband. I am getting the Principal & Interest rebates in my ITR.

In 2011, as a co-owner & joint-owner, I have purchased – our adjacent flat along with my husband(Principal Applicant) – which is also self-occupied by my family & kids.

Myself & my husband have equal (50-50) stakes in this Housing Loan.

The EMI is being paid by my husband for his staff loan – from his salary; the balance – we both pay out as EMIs from our Joint bank account.

My husband is claiming interest/principal rebates under his ITR.

My question is – how do I treat – my portion of the second home, in my ITR?

The EMI-Interest outgo is HIGHER in my joint-loan.

What are the nuances and care to be taken, while filing the ITR?

Thanks in advance.

2 replies on this article “second housing loan – EMI’s tax treatment”

  1. Mohit Pandey says:

    Forgot to mention, if you are declaring both the houses than you have to use ITR 2.

  2. Mohit Pandey says:

    Raja, If you show both house as self-occupied then you can claim tax benefit for one house only not for both. If you want to avail benefit for other than declare it as lent out, show rent as income, pay tax on rented income than you can claim tax benefit on full interest amount of second house (no limit on interest part if house is lent out).

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