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Tax benefits on home loan interest of 3rd home

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Shivanshu Gupta

13 Points Posted on 15 November 2022

I am buying a third house. will I be eligible for tax benefits for home loan interest.

Replies (2)

Quick Summary

Yes, you can claim tax benefits on home loan interest for your third house. However, you can only treat two properties as self-occupied for tax purposes; any additional properties are considered 'deemed to be let out'. Furthermore, the maximum interest deduction you can claim against other income is £200,000 per year, with any excess carried forward.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212475 Points Posted on 15 November 2022

Yes. There is no restriction to claim the deduction as for number of properties. But As per the act a person can have maximum of two self-owned houses as self-occupied. In case the tax payer has more than two self-owned houses as self-occupied, he has to select any two of the house as self-occupied and treat the third house as deemed to have been let out.

Secondly, he is allowed to claim interest for money borrowed for such house properties only upto Rs. 2 lakhs against any other income in a year. Any excess amount is carried forward.