Tax benefit of Interest on Home Loan for 2nd House

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    KANCHAN ROY New Member

    I have a house in Kolkata my home town. This house is jointly owned by me,my mother and my younger brother. The house is on 5000 sqft of land and now the hosue has been demolished to construct an apartment. This construction is being done by a builder with joint venture with us(land owners)

    Now I am relocated in Bangalore for job and booked an apartment at Bangalore. The partment is jointly booked be me & my wife and is under construction. It will be commpleted by Sep-2015. Now if I occupy the apartment in Sep'15 and this is my second house considering the house in Kolkat as firt house.

    So can I then claim the full interest paid on home loan for the Bangalore property even if the total interest crosses 1.5 lakh per year ? I and my wife want to claim 50-50% each on the total interest paid. The total interest paid is 3.6 lakh per year which is above 1.5 lakh limit. Please suggest.
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    The recent budget increased the limit for claiming interest for self occupied property from Rs. 1.5 Lakhs to Rs. 2 Lakhs per annum per person.

    Therefore deduction for payment of interest on home loan is Rs. 2 Lakhs each for you as well as your wife.

    Their is no maximum limit of deduction for let-out property but for self occupied property - the maximum limit is Rs. 2 Lakhs per person

    KANCHAN ROY New Member

    My actual concern is if I have a home under construction at Kolkata ( my home town) and then booked another apartment at Bangalore (where I do job) then can I show the Kolkata house as the self occupied and Bangalore house as second home ? Though actually I will occupy the Bangalore house for my stay as Bangalore is my place of work.
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