Dear Experts
My wife and me plan to buy a flat jointly and take home loan. It will be first property buy for her, but I had bought another flat which is now self-occupied. My questions are -
1. Shall we both be eligible to claim home loan benefits (proportionately)?
2. WIll there be any additional burden i.e. tax, or second-property income once we get possession?
3. Any other factors that we need to keep in mind while planning this
Thanks in advance.
Regards
S. Das
1. Yes
2. Yes, if self occupied, but in case any one given on rent, counter effect will be tax saving.
2. When you own more than 1 House Property and both or all are self occupied and not let out – which means either you’ve made one of them your residence and use the other one for some of your own purpose(not business or profession, since that is covered under the head Profits & Gains of Business & Profession). In this case you will be allowed to treat only one of the properties as Self Occupied and all others are considered to be Deemed to be Let Out. Or simply, you income for this house property will be calculated as if it has been let out.
If your first home is in single name then you can buy a second home in your spouse’s name to help you avoid tax on ‘deemed to be let-out’ property.
CAclubindia
