two self occupied house in different cities – how to deal with taxes

POSTED BY Kapil Benerjee ON March 19, 2012 12:54 am ONE COMMENT

I work with a MNC in Kolkata. I am currently living on rent of Rs. 12,000/-.  My current salary is around Rs. 20, 00,000/- per year.

I have to two houses purchased on loan, details of which are given below:

House A

Purchased in June 2002 in Delhi

Loan from IDBI (Rs. 600,000/-). Outstanding balance as on 29.02.2012, Rs. 98,000/-

For Financial Year 2012 -12, interest on house loan will be around Rs. 20,000/- and principal Rs. 30,000/-

Currently used by Parents for living.

I have been showing this house as “self occupied” and have been claiming deduction for interest on housing loan U/S 24 and repayment of principal U/S 80C till date.

Recently I have purchase another house on loan.

House B

Recently purchased a house in March 2012 in Kolkata.

Loan taken from Axis Bank (Rs. 50, 00,000/-) as on 1st March 2012

For Financial Year 2012 -12, interest on house loan will be around Rs. 535,000/- and principal Rs. 75,000/-

Intend to use this for self occupation

Please can you guide me how I can use the provisions of income tax Act to get maximum tax benefit under the law for FY 2012-13.

 

One reply on this article “two self occupied house in different cities – how to deal with taxes”

  1. Dear Kapil, are you ok with the idea of living on rent for same 12K in Kolkata, putting your own Kolkata house on rent say 10-12K & thus claiming both HRA as well as tax benefit on the new house loan after showing rental income?

    Thanks

    Ashal

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