Tax benefit on home loan
This query is : Resolved
29 August 2016
Hello Experts
Need your input for below case.
Case:
Candidate has house in his name bought by his parents in home town. This house is self occupied (parents staying in same house) and no loan taken for this property.
He works in Pune and is purchasing new house on loan in Pune which will also be self occupied, as he will be staying in that house.
Query:
1. For tax benefit claim, new house will come under 80C + Sec24 or only Sec 24 with no cap on interest rebate for tax?
2. Is there a way that it can come under second option i.e. Sec 24 with no cap on interest because his interest component is large and his 80C component is already utilized with other items like insurance and PF and VPF?
Please remember that none of his house will generating any income but property tax and maintenance are paid for both.
Need your input for below case.
Case:
Candidate has house in his name bought by his parents in home town. This house is self occupied (parents staying in same house) and no loan taken for this property.
He works in Pune and is purchasing new house on loan in Pune which will also be self occupied, as he will be staying in that house.
Query:
1. For tax benefit claim, new house will come under 80C + Sec24 or only Sec 24 with no cap on interest rebate for tax?
2. Is there a way that it can come under second option i.e. Sec 24 with no cap on interest because his interest component is large and his 80C component is already utilized with other items like insurance and PF and VPF?
Please remember that none of his house will generating any income but property tax and maintenance are paid for both.
ACA Anurag
(Expert)
29 August 2016
Dear Ashish,
As per section 24 interest will be allowed on the borrowed capital and the house should be self occupied but no where its mentioned that only 1 house should be self occupied.
Max allowed is 200000 rupees.
Hope your query is resolved
29 August 2016
hello Anurag,
there is no cap on interest applicable for tax benefit if it is second home and deemed let out, I know some people claiming 5-6 lac interest component in Sec24 for tax benefit.
there is no cap on interest applicable for tax benefit if it is second home and deemed let out, I know some people claiming 5-6 lac interest component in Sec24 for tax benefit.
Amol S Joglekar
(Expert)
29 August 2016
for LET out property, there is no any interest CAP
29 August 2016
Assessee can choose one house as self occupied at his option. Other house will treat as let out and interest can be claimed without limit.
ACA Anurag
(Expert)
29 August 2016
Deae ashish,
Interest limit was explained to you in context of self occupied house.
Interest limit was explained to you in context of self occupied house.
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