Help for home loan

Hi, I have a property A jointly in my+father's name(OC received in 2011) on which home loan remaining is 10000 only and it will be exhausted in next EMI. Bank offers me to issue fresh home loan of XYZ lac rupees. I took the loan and purchased a plot B in my+father's name using that money+some other money available with me. Bank does issue provisional certificate to me for property A , my questions is : 1) Can I claim income tax benefit under 24B and 80C for above home loan? 2) Do, I need to show property A as let out property ? 3) Any other suggestions
Replies (10)

 No, the benefits are available for house property and not plot.

Dear Pradeep,

Below are my Answer to your questions:

1. Yes you can claim. If assessee owns 2 properties, one property would be Self Occupied and other will be treated as Deemed to be let out

2. Yes, you need to show one property as let out.

Originally posted by : CA Urvi Gandhi
Dear Pradeep,

Below are my Answer to your questions:

1. Yes you can claim. If assessee owns 2 properties, one property would be Self Occupied and other will be treated as Deemed to be let out

2. Yes, you need to show one property as let out.

Thanks for the reply Urvi. Please note 2nd property(which is a plot ) is purchased using home loan on first property. hence the confusion. 

Originally posted by : Dhirajlal Rambhia
 No, the benefits are available for house property and not plot.

Thanks for the reply Sir. Even if loan is against first property (which is constructed) and bank issuing certificate against that property only?

YOU CAN CLAIM AS IT IS AGAINST HOUSE PROPERTY

IN SIMPLE TERMS BENEFITS LIKE TOP UP ON HOUSE LOAN WILL BE TREATED

WHAT YOU HAVE DONE FOR MONEY NO MATTERS

will have to agree with Rambhia sir. The application of loan for purchase of plot would not entitle you for any deduction.

Sir, this would have been the case if loan would have been against the plot. But my loan is against property A which is constructed home where I am already living.

So your loan papers provide the address of your existing home being the home against which loan is been given?

 

Yes Ruchika

24(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within five years from the end of the financial year in which capital was borrowed, the amount of deduction under this clause shall not exceed two lakh rupees.

Explanation.—For the purposes of this proviso, the expression "new loan" means the whole or any part of a loan taken by the assessee subsequent to the capital borrowed, for the purpose of repayment of such capital.

The second housing loan is not for purchase/ construction of house property or for repayment of such loan. So in my opinion no benefit is available.

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