1. I have a home in Ahmedabad for which I'm paying the loan EMI. The house is occupied by my parents. I don't receive any rental income. I have been availaing the tax benefits on the interest/ principal part of this loan so far. I am sole owner of this house. EMI for this house is around 18k.
2. I live in Bangalore and I had purchased second house. In which, Me & My wife are owners & co-borrowers(Ownership % is not defined). EMI for this house is 36k.
I have the following questions:
1) How can i get maximum benefit under income tax? which house should be declared as Self-Occupied?
2) My limited understanding is that I can claim benefits on the loan's interest component without the 1.5 lacs restriction. (i.e. combine the interests from both the houses and claim tax benefits for the full amount). Is this right?
3) What kind of tax benefits will I get? What kind of benefits will my wife get?
Thanking you in advance for your expert answers,
CAclubindia
