Income tax rebate on home loan interest for second house

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  1. Anup Sharma

    Anup Sharma New Member

    Hello Sir,

    I had taken second home loan in Dec'12. I have received its possession in Sept'16. Till this date I have around 12 lacks as interest. Please let me know in detail how can I get the benefit of the interest u/s 24 in next financial year for interest paid since 2012.

    Secondly, this second home will not be self occupied. Most probably, it wont be possible to let it out in this financial year. I myself reside in my first home. Please let me know how I can avail benefit of tax benefit u/s 24 in this financial year for interest paid in this financial year.

    Anup Sharma
  2. Karan Batra

    Karan Batra Well-Known Member

    1. You can claim 100% deduction for the interest paid this year
    2. For amount paid earlier, you can claim 1/5th of the interest
  3. Anup Sharma

    Anup Sharma New Member

    Thanks for your response. Just to clarify it further.

    1. I can avail tax benefit for 1/5th of 12 Lakhs which is the entire interest amount paid in last 4 years.
    (a) Somewhere I was reading that such benefit is only available within 3 years from the time of taking loan to getting possession. In my case it is 4 years. Can you please confirm that even then this benefit will be applicable?
    (b) 1/5th of 12 Lakhs is 2.4 lakhs. Can I avail tax benefit for this entire amount of 2.4 lakhs in this financial year or is it to be distributed in certain number of years. Again I have read somewhere that this applicable interest amount has to be divided equally into 3 or 5 years. Can you please confirm on this as well

    2. Even though my second property will not be put on rent (empty) and I will be residing in my own first house during this time, I will still be able to avail of tax benefit for full interest paid this year.

    Your help with responses to above queries will be highly appreciated.
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