Tax benefit on home loan interest on 2 properties

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  1. Sanjay Panda

    Sanjay Panda New Member

    I had bought a flat in Bhubaneswar in 2011 & my parents are currently staying in the said property. I along with my wife have bought a flat in Mumbai recently & have availed home loan. The said property is self occupied.

    My query is: Can I claim exemption of actual interest paid on both the properties or the exemption will be restricted to a maximum of Rs 2 lacs in the said section of IT Act.

    The Actual interest paid will be much above Rs 2 lacs.

    What is the way out if I want to claim the exemption for the interest paid in both the loans?

    What is the loss on house property & how will that be applicable in my case?
     
  2. Parul_Gupta

    Parul_Gupta Active Member

    As you have more than 1 property, one of these properties would be deemed as Let out.

    For the let out property, you can claim full deduction of interest and for the self occupied property, you can claim deduction of Rs. 2 Lakhs.
     
    Sanjay Panda likes this.
  3. Sanjay Panda

    Sanjay Panda New Member

    Dear Akanksha,

    Thanks for your prompt response.

    What is the loss on house property & will that be applicable in my case?
     
  4. Parul_Gupta

    Parul_Gupta Active Member

    Deduction under Section 24 for Interest is claimed from Income from House Property.

    So if your Rental Income from House Property is Nil, and you claim deduction for interest under Section 24, it will lead to a negative figure which is called Loss from House Property
     
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