2nd home loan and tax implications


I have below setup.

  1. House-1 : Ahmedabad. Jointly owned by me and sister. Home loan of 10 lakh in my name. Sister lives there. I am taking home loan benefits in this loan. Sister stays there.
  2. House-2: Navi Mumbai. Self-occupied. Have taken loan-against-property in this. Not tax benefits for this one.
  3. Office-1: Ahmedabad. On My name. I have taken commercial property loan for this from HDFC. No tax benefits for this one. Rented out.
  4. House-3: Ahmedabad. I have just seen one flat in Ahmedabad, I and my NRI brother thinking of buying it in joint name. I am planning to take home loan only in my name for this house. This house is rented and there is income from rent.

Question for House-3 is,

  1. What tax benefits I can avail for the House-3? How?

2. Will it be TAX wise beneficial to go for Home Loan for House-3 in name, or just buy paying full amount?

KVO Merau Kutchh

Interest of home loan over property 3 will be deductible against its rental income. Total deduction u/h. HP will be capped at 2 lakhs, additional amount can be carried forward to next 8 years.


Hi Mr. Rambhia,


Thank you for your reply. 

My key question is, can an NRI and an Indian in India buy a property in joint name? (both being brother)



You may buy, there are restrictions under Income Tax Act,1961 


As per RBI guidelines-

Yes, an NRI can invest in any property in joint name with an Indian.

However, they are not permitted to invest in farm house, plantation land, and agriculture land.



Your are not logged in . Please login to post replies

Click here to Login / Register