Income tax benefits on second housing loan

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  1. sujir

    sujir New Member

    Hello ,

    Could you please advise on below scenario.

    My earlier housing loan was re-payed completely and tax benefits(interest + principal) were also claimed on it. Now that I have taken a second housing loan from same bank for the extension of the house. Can i claim income tax benefits on the EMI that I'm paying for the bank. If I can claim then can i claim both Interest and principal ?. My employer suggests that i can claim only the interest deduction and not the principal deduction, is my employer correct.

    Thanks in advance.
  2. rudrabose

    rudrabose Active Member

    Dear Sujir

    You can claim deduction for both Principal as well as Interest for the 2nd House. Deduction for Principal is allowed under Section 80C and Deduction for Interest is allowed under Section 24

    However, in case your house is under construction - deduction for principal would be allowed only once the construction is completed.
  3. sujir

    sujir New Member


    Thanks for your early response. The construction of the house is completed.
    The issue is the department which processes all the request in my company are adamant and they are not agreeing to it. Is there reference material or guide which states that 2nd housing loan can be claimed. this would be really helpful.
  4. rudrabose

    rudrabose Active Member

    The Law is silent with respect to deduction for how many houses can be claimed.

    And as a general rule, if no limit is stated - it means that there is no maximum limit in such a case.

    Ask your employer for the reference material on where it is stated. Or just tell them to do a Google Search and show where is it written. Because no maximum limit has been stated anywhere regarding deduction for how many houses can be claimed.
  5. sujir

    sujir New Member

    Thanks Rudrabose. as you said earlier I will take the print out of Section 24 and Section 80 C and show it to them its not written anywhere. Thanks a lot for your suggestion.
  6. Pushvinder Singh

    Pushvinder Singh New Member

    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.
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