Housing loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2015 Dear Sir,

I already have a house on my and my wifes name. Currently the loan is going on and the house is vacant. I am staying in a rented house due to proximity near to my office.

Me and wife both are working. We plan to take another house which is under construction and would avail loan. The house would be completed by Oct end.

I need to understand what will be the tax implications on us ?

how can we avail maximum benefit ?

As the house is under construction what will be the benefit ?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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02 March 2015 Only one residential house would be exempt hence in respect of your present house which is vacant you and your wife can avail interest and principal repayment benefit jointly in case you both are co owners as well as joint borrowers.

However if you purchase another house the same will not be exempt and the same will be deemed to be let out and its notional rental value will have to be declared out of which you will get 30% repairs deduction and interest on borrowed capital deduction. Thus you will have to declare notional rental value of second house even if it is not actually rented out.

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2015 Sir,

Thanks for the info.

Is there any limit on the interest that would be availed by me and my wife. We are co owners and as well as joint borrowers.

Also the new house that we have booked is under construction and loan has started on it.
It would be completed by Oct End.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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02 March 2015 You can avail maximum interest deduction upto Rs. 1.5 lakh on self occupied property (house no 1 which will be exempt as self occupied) for AY 2014-15 and Rs.2 lac for AY 2015-16. On new house upto actual interest payment. One more thing you have the option to declare one of the two houses as your self occupied one.