Home loan rebate

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Varma (Querist)

05 June 2014 My Uncle want to buy a 2nd home by taking a housing loan(1st home loan amount is cleared). Will he get tax benefit? If yes, how much "notional rent" will he have to show for the present home which he is occupying, if any?

Amol S Joglekar

Amol S Joglekar (Expert)

05 June 2014 There is no harm or rather any restricting provision in Indian Income Tax Act, that only one house can be self occupied. There can 'n' number of self occupied houses...out of that only one will qualify for the loss on account of interest on borrowed capital..if the first loan on first house is repaid....he can claim this second loan on second house

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Nikhil Kaushik

Nikhil Kaushik (Expert)

06 June 2014 1. for the self occupied house...the interest limit shall be Rs 1.5 lakhs

2. for the deemed let out house, the notional rent shall be computed as per the provisions of section 23. interest payable against this house shall be fully deductible against this notional rent.

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