Tax doubts related to second home loan

Tax queries 608 views 2 replies

hb

tech lead

25 Points Joined September 2014

Hi,

I have a question for those who have insight into taxes.
I have a home in which I am first owner and my father is co-owner. Loan is closed for the first house.

I have to change city due to change in job so planning to by another home. Currently first home is on rent (let out property) and this second home will be the one in which I will stay.

For this second home, me and my wife will be co-owners, so for me its second house loan but for my wife its first house loan.
I have following doubts related to income tax benefit me or my wife can take.

1. What all tax benefit I can take on second house loan?

2. If I cannot take all Tax benefit due to second house loan, can my wife take tax benefit as this is her first house loan?

3. Currently house is under construction, so can me or my wife show home loan principle and interest amount in income tax?

4. Once house is completed, how much interest part can be shown in tax?

Thanx & Regards

Replies (2)

Mihir

Wealth Manager

5293 Points Joined December 2008

You mentioned the loan on the first home is closed, which means you repaid all the loan outstanding. For the second home, which is in joint name with you and your wife, you may take joint loan toward the second home. You and your wife both cannot claim interest deduction till you get the possession of the house, and thereafter, the previous years interest can be claimed in 5 equal installments.

hb

tech lead

25 Points Joined September 2014

Hi Mihir,

Thank you for the reply.

Regarding priciple amount, Can I take tax benifit for the principle amount for under construction house? If I cannot take tax benefit for principle amount being second home for me, can my wife take tax benefit for principle amount paid on EMI ?