Income tax benefits on second home loan — Explained

The taxation benefits successful respect of the home loan are disposable to you from the fiscal twelvemonth successful which you person obtained possession of the location i.e. fiscal twelvemonth 2023-2024. Please enactment that the payment for the full twelvemonth is disposable adjacent if the possession is taken connected the past time of the fiscal year.

For the involvement paid earlier the fiscal twelvemonth 2023-2024, the aforesaid tin beryllium claimed successful 5 adjacent yearly installments opening from the twelvemonth successful which the possession is taken by you on with the existent year’s involvement wrong the limits applicable depending connected whether the location is self-occupied oregon fto out.

As the 2nd location volition beryllium utilized by your parents, the aforesaid besides shall beryllium treated arsenic self-occupied for income taxation purposes. The taxation laws let you to person a maximum of 2 houses arsenic self-occupied.

In lawsuit you person taken a location indebtedness for the archetypal location also, the aggregate of ₹2 lakh of involvement tin beryllium claimed nether Section 24(b) for some the self-occupied houses taken together.

Concerning the deduction of repayment of main repayment nether Section 80C, you tin assertion the aforesaid wrong the wide bounds of ₹1.50 lakh on with different eligible items for repayment of location indebtedness main successful respect of immoderate fig of location loans.

Please enactment that the taxation benefits successful respect of involvement connected location loans for self-occupied location property/ies arsenic good arsenic for repayment of main repayment are disposable lone if you opt for the aged taxation authorities and are not disposable nether the caller taxation regime.

Balwant Jain is simply a taxation and concern adept and tin beryllium reached astatine jainbalwant@gmail.com and connected @jainbalwant connected Twitter.

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Published: 20 Apr 2024, 08:10 AM IST