2nd home loan - tax benefit

Tax queries 1535 views 9 replies
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software engg
51 Points Joined July 2012
* I am owning a house in Pune - I have taken home loan for it and availing tax benefit.
* I am staying in chennai in rented flat.
* I am planning to buy a flat in Chennai and want to give it for rent.
 
Question 1:
  Can I avail tax benefits on 2nd flat which I am going to buy in Chennai?
  If interest component for new flat that I am going to purchase is 2 Lakhs, will this total amount become tax free?
Question 2:
  Can I avail tax benefits on 2nd flat, if I move to new flat?
 
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On 26 August 2013 at 21:12 Report
Replies (9)
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ADVOCATE- TAXATION ADVISOR
427 Points Joined November 2011
Yes you can claim the tax benefit with respect to intt. on loan without any limit but subject to that same will be rented-out.
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On 26 August 2013 at 21:57
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Wealth Manager
5293 Points Joined December 2008

If the flat is self-occupied, then interest available for deduction is Rs. 150,000/-

If the flat is on rent, then interest available for deduction is interest actually paid.

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On 27 August 2013 at 07:01
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Accountant.
834 Points Joined May 2008
YES MR MIHIR IS RIGHT
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On 27 August 2013 at 11:52
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CA Final - Article
365 Points Joined January 2010
Originally posted by : Mihir

If the flat is self-occupied, then interest available for deduction is Rs. 150,000/-

If the flat is on rent, then interest available for deduction is interest actually paid.

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On 27 August 2013 at 13:20
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ACCOUNTS EXECUTIVE
23 Points Joined February 2010


If we are paying EMI of 2nd Home Rs.35000/- & we rented out our flat on Rent @ Rs. 11000 P. M.

In this situation, Which amount will be taxable for IT?

Regards,

BHAGYESH JAIN

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On 17 September 2013 at 14:50
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ACCOUNTS EXECUTIVE
23 Points Joined February 2010


If we are paying EMI of 2nd Home Rs.35000/- & we rented out our flat on Rent @ Rs. 11000 P. M.

In this situation, Which amount will be taxable for IT?

Regards,

BHAGYESH JAIN

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On 17 September 2013 at 14:57
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9821662799
391 Points Joined August 2013

Total Rental income for the year will be taxable from which you can claim deduction of the interest component of the EMI.

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On 17 September 2013 at 17:41
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Accounts Professional
356 Points Joined January 2010

If my owned house in Navi Mumbai & I am staying in Mumbai (around 30 Km away), then I claimed HRA & with Interest also or not???

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On 18 September 2013 at 12:36
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Asst Manager - Finance
139 Points Joined October 2009

U can claim interest as rightly said by MIhir. Based on interest amount u can decide whether to show rental income or income.

HRA exemption cannot be claimed when u own a house in same city.

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On 18 September 2013 at 18:08

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