I am having a home loan currently running for a flat in my hometown (Orissa). My parents stay there and am claiming tax benefit of 1.5L for the same since past 2 yrs.
As of now I have booked a property in the place (Karnataka) where I stay for my job which is my 2nd home loan. Am going to get the possession in another 2-3 months (EMI started).
I have still not decided to rent it or stay in it provided my parents will continue staying in my flat in hometown. As I know, if there are two home loans, we get tax benefit for the entire interest we pay for the second home loan. Please suggest me ways to get maximum tax benefit i.e. for entire interest component of the 2nd homeloan. As per my knowledge, if I stay in the newly constructed flat purchased from the 2nd homelaon then I can show only 1.5L for tax benefit (and I cannot claim HRA).
So, if I stay in a rented flat then can I show entire interest paid for the 2nd homeloan ? (provided I will show rent earned from renting my 2nd home as income). If this is the case then at the same time can I claim HRA as well since am still staying in a rented flat ?
With all these going on will I still be able to show 1.5L for the 1st homeloan which is and will be still running for another 10 years ?
Please suggest me the best options.
Thanks..!!