Income tax on second home loan interest

Please reply as I need to file return.

Please clarify first.. how many house do you own.. any sale/purchase... and total intt paid... Whether houses are self occupied or rented?

thanks for reply.

I have two houses. House I mentioned above is rented one.

For self occupied house interest paid is 23000

For rented one, total interest paid is Rs. 163000. For rented flat I paid pre emi till Nov and from Dec onwards full emi started. I got possession of rented flat in Feb 2011.

I heard that pre emi paid should be equally devided in 5 yrs. In my case I paid pre-emi till Nov2010. And my full EMI started in Dec 2010.

So in my case, can I claim whole interest for tax excemption?

You get deduction for the whole amount paid as intt on home loan in the year of possession, whether it's pre-emi or not. Intt before before that year will be equally divided in 5 installments.

In your case,

For Self occupied, you will get deduction of Rs. 23000/-.

For Rented one, if intt paid during the financial year 2010-11 is Rs. 163000/-, you will get deduction of Rs. 163000+ 1/5 of intt paid as pre-emi before F.Y> 2010-11.

Thanks Nitu and Suraj for your help.