Tax Benefit on two home loans

POSTED BY Senthil A ON April 18, 2013 10:25 am COMMENTS (23)


I have two home loans, the 1st home is in different city which is rented out. The second one recently bought and self occupied. 

From 1st home i am getting monthly rental of  Rs. 9000 and paying property tax of Rs. 1000. The Annual home loan interest is around  Rs. 1,00,000

The 2nd home loan annual interest is around 2,50,000. 

Let me know how much tax benifit can avail on this.




23 replies on this article “Tax Benefit on two home loans”

  1. Jaipal says:

    What if we give second home also for rent? I mean one can have two houses given for rent and staying in rented house due to some reasons. Can he get tax benefit on interests of two home loans and also HRA?

    1. I am not very clear on this

      1. Jaipal says:

        I am living in rented house and I bought two houses by taking home loan. I am paying EMIs for two home loans. Can I get tax benefit for my two home loans and also HRA benefit?

        1. Jaipal says:

          I gave my two houses for rent and I am getting rental income.

  2. Ram says:

    I have two home loans.

    Home 1 -> Interest 1.5L
    Home 2 (Joint HL with wife) -> Interest 5L.

    As per the information I have, I can show Home 2 on rent. So for home 1 I will get 1.5L tax deduction.

    For Home2; My wife will claim 1.5L so rest 3.5L – standard deduction I can claim as tax benefit.

    So anyone please help?

  3. ashalanshu says:

    Dear Lucky, can you come over personal E-mail? I somehow not getting clear info from you that’s why asking to discuss privately. if it’s Ok to you.



  4. luckyr18 says:

    So you mean me and my wife will reside in first house.
    My father will reside in second house. We all 3 are the partners of this house.

    Then both houses will be called as self occupied or not ?

  5. ashalanshu says:

    Dear Lucky, if you declare rental income from 2nd house, full interest ‘ll be available for you and your wife and your father.



  6. luckyr18 says:

    My father will occupy the second home

  7. luckyr18 says:

    Myself, my wife and my father are in govt. services and are earning Rs.40000 each. We have two home loans. First home is in the name of myself and my wife for which we are paying 12500 each i.e., 25000 as emi.
    Second home is in the name of Myself, my wife and my father for which we are paying 9000 each i.e., 27000 as emi.
    Myself and my wife are enjoying tax benefits on our first home.

    What will be tax deductions for second home

  8. Dear Senthil, as the nnd house in your case is self occupied property, the interest benefit ‘ll be limited to 1.5L Rs. only & not the 2.5L Rs. as you are thinking.



  9. Senthil A says:

    Thanks FFC & Ashal. Let me know my understanding is correct from the above information & article

    2nd home self occupied:

    Principal amt: up to 1 lakh deductible (80C)
    interest amt: 2.5 lakhs

    1st home rental property:

    Principal amt: not eligible
    interest amt: 1 lakhs

    Total interest amount deductible: 1st home loan interest ( (rent – municipal tax) – ( 30%deduction + H.L interest) + 2nd home loan interest.


  10. Dear Pattu, the interest related thing is already discussed by me in that discussion with dear Bhanu Prakash.



  11. Dear Pattu, it’s alright. All of us are learning collectively. Second point I assume you are referring to Interest benefit. Please tell what are your queries & we can discuss it.



    1. I dont have a query. I thought the article answered Senthil’s question. I need to understand how exactly it is wrong. Not saying it is not wrong. Just need to learn the difference. Thanks

  12. Dear Pattu, the article shared by you is providing wrong info. For correct version, please check this –



    1. Thanks a lot Ashal. So the principal amt of both loans can be clubbed for 80C deductions up to 1 lakh. The second point requires a little more reading to understand. Will do so.

  13. Jha says:

    Dear FFC

    Thanks for your clarifications., Regards, Jha

  14. Jha says:

    Dear Mr. FFC

    Pl. recheck your answer on principal amount claiming under 80c for Rental Property.

    Regards, Jha

    1. The above link confirms what I have written. other sources can easily be found.

  15. self occupied property:

    Principal amt: up to 1 lakh deductible (80C)
    interest amt: upt o 1.5 lakh deductible (section 24)

    rental property:

    Principal amt: not eligible
    interest amt: entire amt deductible (not limit)

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