banner_ad

Tax implication - 2nd house (co-owned)

Tax queries 541 views 3 replies

Hi,

Me and my husband co-owned one house where we are staying currently. We purchased one more apartment in 2011 and it is still under construction. We both fall under the 30% tax bracket. Also, we have not taken any loan in either of the property. 

Query 1: what are the tax implications for the 2nd property? 

Query2: From when we need to pay the deemed tax as I do not think we can either occupy or rent the 2nd property immediately after getting possession from the builder?  

Query 4: What about the wealth tax for the 2nd property?

Query 5: Can I declare the 2nd property as self-occupied even though I am staying in the 1st property considering the fact that the price (current as well as buying ) of the 2nd property is much higher than the 1st.

query 6: Does it make any sense to take home loan to repay the balance 10% amount for the 2nd property?

Thanks

Kalyani

Replies (3)

You may treat any one property as self-occupied and the other as deemed to be let out. If you obtain a home loan from a bank for paying off balance 10%, then interest actually paid shall be available for deduction u/s 24 from the gross annual value while computing income from house property.

Interest will be allowed as deduction u/s 24(b) and principal will be allowed as deduction u/s 80c
Once the property is ready for possession it will be deemed to be let out even if you dont put it on rent and thus taxable.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details