Can Income Tax rebate be claimed on 2nd Housing Loan.?

Earlier I had taken a Housing Loan and I am getting the applicable Income Tax benefits on it. Now, I am planning to buy a new house after taking a new housing loan. I would like to know that am I eligible to get the Income Tax benefits on a/c of my 2nd Housing Loan or not. If yes, under which section of Income Tax.

3 Replies to “Can Income Tax rebate be claimed on 2nd Housing Loan.?”

  1. Yes u can. for that u have to show Rental income for another house you are buying, If you dont intend to rent out new property you have to take a fare value of the rent, though u have the right to choose between those 2 houses to show one as self occupied property. It is suggested to you (in case you dont let out property) to choose that house as self occupied property which yield maximum rent. under section 24 u will get the deduction.

  2. ‘Income from House Property’

    It is important to note that the interest paid on a home loan is not directly deductible from your salary income or your business income.
    What actually happens is that a calculation of ‘Income from House Property’ is made for each property you own. If such a calculation results in a loss, it is allowed to be set off against your income from other heads.

    The limit of Rs 1,50,000 is applicable only while calculating the income from one self occupied property.

    Since the second house (onwards) is treated as being rented out (notional rent) for income tax purposes, the deduction for interest is not limited to Rs 1,50,000 in respect of the loan taken for this house. The deduction for interest payable on a loan taken to buy / construct house properties (if you have more than one) is not subject to any overall limit.

    The entire principal paid on all the housing loans will be eligible for deduction under Section 80C, subject to the overall cap of Rs 1,00,000.


Leave a Reply to ha_ha guy Cancel reply

Your email address will not be published. Required fields are marked *

sixteen + 14 =