2nd home loan and tax implications



Hi,

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?

 
Reply   
 
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.

 
Reply   
 

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)

 
Reply   
 

Yes.

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

 
Reply   
 

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.

 
Reply   
 

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