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It benefit for new home loan (earlier flat sold)

rk (Others)     11 September 2019

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I sold 7-year-old flat in March 2019 for 42 Lakhs. I was availing IT benefits for this home loan (principal and interest).

I purchased a new flat in Oct 2018 for 60 Lakhs. Can I avail IT benefits on this new home loan (both principal and interest) for the FY 2019-20 and onwards?

I do not own any other property.




Dhirajlal Rambhia (KVO Merau Kutchh)     11 September 2019

Dhirajlal Rambhia
KVO Merau Kutchh 
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Yes you can avail benefit of home loan interest & principal over second flat also...

At the same time you are entitled to get LTCG exemption u/s. 54 for the sold flat, but you should file return for AY 2019-20.

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Suresh Thiyagarajan (Student)     11 September 2019

Suresh Thiyagarajan
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1. You can claim deductions towards principal repayment under sec 80C there is no restriction for the second house. In your case since you have already sold the property, there should not be any problem. 
2. Interest can also be claimed as deductions u/s 24(b) to the extent of Rs. 2,00,000. 
3. And explained by expert above the sale of a house to the tune of Rs. 42 lakhs will attract Long term capital gains and subsequently, if another house is purchased within a period of 2 years from the date of sale then the same will exempted u/s 54. 
Please correct me if the above solution has an alternative view. 

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Kapadia Pravin   11 September 2019

Kapadia Pravin

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Surely you can avail deductions on new flat from date of acquisition and on old flat too till the date it is sold. However deductions under 80C and 24((b) towards principle and interest would be upto the maximum limits prescribed.

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