Home loan- second home

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2013 I believe the interest on home loan of the second property is fully deductible for taxation purposes.
Is this true for properties under construction as well or only those that are completed?
Thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 January 2013 Interest can be claimed only on completion of the property.
.
You can claim interest in respect of as many
houses you buy on loan as you can.
.
You have to treat one as self occupied , for that max interest limit is 1.50 lacs.
.
Other houses will be treated as let out (deemed let out) in respect of those, you can claim full interest amount.
.
However, Interest can be claimed only on completion of the property.

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2013 So the interest I pay during construction of these properties will be lost?
Thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 January 2013 It will be not lost, it will be accumulated and will be claimed equally in succeeding 5 years from the year in which the construction gets completed.

srinivasan

srinivasan (Expert)
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02 January 2013 Yes, Mr.Bafna is correct. To be precise, the interest upto the date of taking pocession of the property will be allowed in five equal installments from the finacial year of taking the property into pocession