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Income tax on second home

PK (Others) (28 Points)

03 July 2013

Hi Experts,

I have a house in Bangalore on which there is no loan amount. I would like to purchase a second home in the same city. I have some queries regarding the tax benefits which I can avail.

Can I get the tax benefits of the loan on second home even without having a loan on my first house. I am not interested in 80C (Rs 1Lac) and 24 (Rs 1.5Lac on interest) tax benefits as I already have my PF and other investments like LIC which takes care of 80C and also under sec 24, the max savings I can get is around Rs 50K when I pay 1.5Lacs as interest.

Pls help me with your expert guidance

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2 Replies

CA Ankit Totla (Practicing Chartered Accountant) (469 Points)
Replied 03 July 2013

PK,

You are entitled to the deduction of entire interest paid by you on loan taken from banks and other Financial Institutions for purchasing a home, if the home is let out.

So incase you let out the property, you can claim maximum benefit

Parthsarthi Patel (CA) (98 Points)
Replied 03 July 2013

If you have more than one property, you can go for tax planning by way of claiming either of them by claiming S.O and other by deemed let out. On deemed let out property, there is no interest cap of Rs.150K. So plan accordingly and avail max benefit.