Income tax deduction for second house

Dear Bhushan,

In your Case, you have to cover 3 types of transactions:

1. Deduction of Repayment of Principal Amount
2. Deduction of Payment of Interest Amount
3. Rental Income

So will tell u one by one solution

1. The Total Principal Paid by you is Rs. 112629+ Rs. 60000=Rs. 172629/-. The repayment of principal amount under housing loan is covered deduction u/s 80C under Deduction under Chapter VI A. So you can claim deduction under section 80C for the amount of Rs. 150000/- (Limit including of other deductions under section 80c like, LIC, PPF, Tution Fees etc.).

2. The total interest paid by you is 136107+180000= Rs. 316107. The payment of interest of housing loan covered under Section 24A under Income From House Property. There is limit of Rs. 200000( for AY 2014-15 onwards) if the property is self occupied (means you are residing there) or by reason of the fact owing to your employment, business or profession carried out any other place so you has to reside at any other place..

3. The third one is Rental Income. You may also claim deduction under section 24b under income from House Property for amount equal to 30% of the total amount received or due to be received as Rent for the period i.e. 22000*12*30%= Rs. 79,200/-

Regards

Neeraj Goswami