Income tax benefit on Home loan on 2 properties

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  1. Pushvinder Singh

    Pushvinder Singh New Member

    Income tax benefit on Home loan on 2 properties

    Hi, My query is regarding income tax benefit on 2 home loan. Can i claim deduction under both Section 80EE and Section 24.

    My first home loan is less than 25 Lacs for the property value less than 40 lacs. The interest on this home loan is around 1.7 lacs.

    My second home loan is for Rs. 35 lacs and property value more than 50 lacs. The interest on this home loan is around 2.6 lacs.

    My query is how much maximum interest benefit can i take under both the section 80EE and section 24.

    Thanks in advance for the reply.
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, you can claim deduction under both Section 80EE as well as Section 24

    The maximum deduction allowed under Section 80EE is Rs. 1,00,000

    The maximum deduction allowed under Section 24 is as follows:-
    1. For Self Occupied Property - Rs. 2,00,000
    2. For Non-Self Occupied Property - No Limit
     
  3. Pushvinder Singh

    Pushvinder Singh New Member

    Thanks for your reply. So in my case as mentioned above the total deduction I can claim is for Rs. 3.0 lacs as followed -
    1. Rs. 2 lacs under section 24 against my interest amount of Rs. 2.6 lacs and
    2. Rs. 1 lacs under section 80EE against my interest amount of Rs. 1.7 lacs

    Would be grateful if you confirm the above.
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Tax Planning can be done in your case.

    In case none of the houses is let out on Rent, you can show any house as self occupied and any house as deemed let out.

    So, if you show your 2nd house as deemed let out, you can claim full interest deduction under Section 24 of Rs. 2.6 Lakhs.

    For the 1st house, you can show it as Self Occupied and limit for claiming deduction for Self Occupied property under section 24 is Rs. 2 Lakhs. So you can claim Rs. 1.7 Lakhs deduction in this case.

    So without using Section 80EE, you can legally claim a deduction of Rs. 2.6L + 1.7L = 4.3 Lakhs which is much higher than the deduction of Rs. 3 Lakhs as computed by you.

    Hope it helps :)
     
    Pushvinder Singh likes this.
  5. Pushvinder Singh

    Pushvinder Singh New Member

    Thanks once again for your response. I understand your calculation and tax planning.
    But i guess that for investment declaration in the company, they don't consider the loss from house property. We have to claim refund of tax.
    There is one more complication in my case, that the home loan of Rs. 35 lacs (interest amount of Rs. 2.6 lacs), the property is in my parents name not mine. While the other property is in my name.

    Also for investment declaration in the company can i take Rs. 3 lacs deduction as stated in my earlier query.
    Will appreciate your reply on this.
     
  6. gaurav_kumar

    gaurav_kumar Well-Known Member

    For investment declaration in the company - they do consider Loss from House Property. All companies accept this.

    If the Home is on your parents name and the loan is on your name, you can claim deduction.
     
    Pushvinder Singh likes this.
  7. gaurav_kumar

    gaurav_kumar Well-Known Member

    If you wish to take Rs. 3 Lakh as deduction - yes you can claim it.

    However, you can also claim Rs. 4.3 Lakhs as deduction as mentioned above
     
    Pushvinder Singh likes this.
  8. Hetalkumar Hindocha

    Hetalkumar Hindocha New Member

    Sir,

    I have availed Home Loan, wherein due to good repayment track, Home Equity Loan on same colleteral granted by bank as top up. Can i claim Interest of Home Loan as well as Home Equity Loan from my Income and show it in Investment Declaration ? Though Home Equity may utilize for any of the purpose. In my case i have utilized for Renovation of my dwelling home. Kindly guide.
     
    prabhakaran likes this.
  9. prabhakaran

    prabhakaran New Member

     
  10. gaurav_kumar

    gaurav_kumar Well-Known Member

    As the Top-up Loan has been utilized by you for Renovation of a House Property, therefore you can claim deduction for the Top-up Loan as well
     
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