Tax benefit on second property

Hi , Plz clarify below cases.

Case-1 :- Person X is a salaried employee , Taken a Home loan & paying EMI & Interest in same city having job. He claims Both HRA & House loan benefit . 1st House is let out with Nominal amount. Now Person X Buy another house loan in the same city , & Pays Interest  for the 2nd house & property is under construction  . Now can he claim Both HRA & House loan benefit for 1st & 2nd House ? If yes then up to what maximum limit ?

Case-2 :- Person X still continues to claim HRA , Clubs the rental Income from the 1st House & claim actual interest paid ( 2lakh per year ) . and also wants to take tax benefit from the Interest paid on 2nd house ( 1.5lah per annum ) . Then is it possible ? If yes then Limit to which extent ?

 

Plz guide

Br/rashmi

Replies (2)

Case : I - Person can not claim HRA since he is living in same city....

Money may be borrowed prior to the acquisition or construction of the property.  In such a case, interest paid/payable before the final completion of construction or acquisition of the property will be aggregated and allowed in five successive financial years starting with the year in which the acquisition or construction is completed.  This deduction is not allowed if the loan is utilized for repairs, renewal or reconstruction.

Case : II - You can take benefit on interest on house loan of maximum 1.50lac.... whether  you are paying interest of one home loan or two home loan....

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