Reg 2nd Housing loan

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Surya Prakash (Querist)

21 April 2011 Dear All,

I am planning to take 2nd Home loan. My 1st home loan is there from 5 years and for the same I am claiming interest and principal benefit.

I am planning to rent out my 1st house and move to 2nd house.

Now, my question is:

1. Is it possible to claim tax benefit on my 2nd home loan also? (when 1st home loan is still continuing).

2. If so, how much benefit I can get on interest/principal or both?

Please help in clarifying these.

Thanks in advance,
Regards,
Surya.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

24 April 2011 yes.deduction can be taken but 2nd house cannot be shown as self occupied and need to be show as let out or deemed to be letout

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Surya Prakash

Surya Prakash (Querist)

25 April 2011 Dear Ramesh Krishnan,

Thank you!
Also, Can you please clarify following:

1. I understand that I need to claim this deduction while filing IT returns. Is it correct?

2. Is there any limit on the 2nd home loan interest that can be claimed for deduction?

3. 2nd home loan Principal can be claimed?

Thanks in advance,
Regards,
Surya.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

26 April 2011 1.yes need to claim in Income tax return

2.Limit is as usual Rs.1.50 lakh for SOP and Actual for LOP, but one house only can be claimed as SOP, others need to be shown as LOP or Deemed to be LOP

3.Under 80C there is no specific requirement for SOP or LOP so can be claimed

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