Income tax benefit - second property

Interest paid>> Up to Rs. Two Lakh if completed within 3 years from the end of the fin. year in which loan is taken, else Rs. 30,000.Interest for pre construction/Acquisition period is allowable in 5 equal installment beginning from the year of completion of house property. This deduction is not allowable if the loan is utilized for repairs, renewal or reconstruction.

Originally posted by : Uttam
	Interest paid>> Up to Rs. Two Lakh if completed within 3 years from the end of the fin. year in which loan is taken, else Rs. 30,000.Interest for pre construction/Acquisition period is allowable in 5 equal installment beginning from the year of completion of house property. This deduction is not allowable if the loan is utilized for repairs, renewal or reconstruction.

Okay, but I'm planning to give that property out on rent.

I have heard that I can claim unlimited benefit by way of interest paid in excess of rental income received?

Could you help?

If this second property is Let out Property, then there is no limit on the interest expense that can be claimed in a particular year. Whatever you incur, you may claim. 

Interest claimable on LOP house: Interest incurred during the year+1/5th of preconstruction interest(for 5 yrs)