Tax benefit for Housing Loan interest and Principal

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This query is : Resolved

Rajen Pandya (Querist)

08 November 2009 Hi,

Following is my query.
If I have taken housing loans for two houses, then in that case, can I get the tax benefit for the principal amount as well as interest amount paid for both the houses subject to the prescribed limits?

Please suggest asap.

Regards,
Rajen

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

08 November 2009 In the case of two houses, one will be treated as self occupied and the other as deemed to be let out. For self occupied house interest will be allowed as per section 24 (b) and for the repayment of principal portion deduction will be allowed under section 80C subject to the limits contained therein in the respective section. For the house deemed to be let out interest will be allowed under section 24(b) without any limit and no deduction will be allowed for the principal portion repaid because the word used therein is'a residential house'.

Rajnish

Rajnish (Expert)

09 November 2009 In case one has more than one self occupied property then only one property will be consider as self occupied. Other will be deemed rented. Hence for getting benefit you have to choose the house as self occupied considering following points.
For Principle amount:Benefit for claiming deduction u/s 80C on repayment of loan taken for construction/purchase of house is available for only self occupied house (total deduction u/s 80C should not exceed Rs.100000). No deduction is allowable for rented properties.
For Interest amount: deduction for interest on self occupied property is avavilable u/c 24(b) subject to limit. Deductiton for interest on rented property is now availabel without any limit.

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