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Second home loan

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C.MANORANJAN

AGM

22 Points Posted on 22 January 2014

I have taken a second home loan for construction of house at my native place.

The construction will be completed in Feb 2014 and house will be let out Mar 2014.

I have paid Pre EMI amount from Oct 13 to jan 2014 and my EMI starts from FEB 2014.

I am a salaried employee working in chennai . Can I claim the Pre EMI interest and EMI interest of FEB

and Mar 14 for Tax planning for the year APR 2013 -Mar 2014.

Replies (2)

CA SONIYA AGARWAL

self practice

1946 Points Posted on 22 January 2014

yes u can claim , interest period prior to construction of house property can be claimed in 5 equal instalment from the date construction is complted.

SAURABH NENE

Chartered Accountant

176 Points Posted on 22 January 2014

For claiming Interest on Housing Loan Repayment u/s 24 (b) the limit is on the amount of deduction i.e. Rs. 1,50,000/- if it is self occupied house. However no limit applies if it is rented or deemded let-out house. However there is no restriction on claiming deduction for two housing loans as far as interest is concerned. However in case deduction for Principle Repayment u/s 80 C, you can claim deduction in respect of only One House Property.