I recently took a top up loan from ICICI Bank. I already have a home loan with them for which I have been claiming tax exemption under sections 80C and 24.
What I have read on the internet
1. You can claim tax exemption on the top up loan provided it is used for purpose like home improvement, renovation etc of the same house for which loan has been taken (How do I prove this to the income tax department is a mystery)
2. You can claim tax exemption only on the interest portion of the top up loan and that too for a limit of 30,000 only.
3. You can’t claim any tax exemption on top up loan
There is no conclusive information anywhere. So my question is open to this forum.
Can I avail any kind of tax exemption on top up loan? How much and how?