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two home loans - two properties

Tax planning 1261 views 1 replies

Hi all, request you to please guide on this..

One home loan of 5 lac is taken in 2001 for self occupied property  and income tax benefit is taken for 3-4 yrs now..

Now person has taken another home loan say 20 lac in yr 2008  and made cash down payment to builder to purchase another housing property ...but property is under - construction and will be completed dec09/jun10 ..but loan is taken for 85% cost of property and person is repaying principle and interest component to bank...there is no pre-emi ineterest like of situation here.. Pls advise if person can claim income tax benefit of second property , if yes then How... thanks in advance..

Replies (1)
Originally posted by :Sanjay Rustagi
" Hi all, request you to please guide on this..
One home loan of 5 lac is taken in 2001 for self occupied property  and income tax benefit is taken for 3-4 yrs now..
Now person has taken another home loan say 20 lac in yr 2008  and made cash down payment to builder to purchase another housing property ...but property is under - construction and will be completed dec09/jun10 ..but loan is taken for 85% cost of property and person is repaying principle and interest component to bank...there is no pre-emi ineterest like of situation here.. Pls advise if person can claim income tax benefit of second property , if yes then How... thanks in advance..
"


 

Hello Sanjay,

in my opinion for dedcution of intrest on loan sec24(2) the said property is must constructed so u may not get deduction in regards int on property which is still in progress.


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