I was having a home loan which i closed on last financial year (2011-12). Currently I stay in the house which i had constructed using this home loan. Since the rate of interest was hiked above 12%, i thought it is not wise to have this loan any more and i prepaid the entire loan amount and closed it.
Now i am planning to buy a new site and construct a new house in that by taking a second home loan. I am aware that if there are two home loans, i get tax benefit for the entire interest i pay for the second home loan. In my case, do you think if i go for the second home loan, i can claim tax benefit for full interest paid as i do not have two housing loans running at the same time.
Or When i closed my first housing loan, and go for a second home loan, am i eligible to get interest benefit out of my second home loan.