What is the tax exemption, if one buys two flats by taking housing loans.?

am having my own house at Thane ( Maharashtra ) & I am residing presently there. I have taken a home loan for this house & availing tax benefits wrt interest & principal componenets. I am planning to buy another house at my native place ( in MP) after taking another loan. After purchasing, I am planning to rent this house. My query is
a) whether I can avail the tax benefits against this loan along with previous loan.
b) If yes, then how much.

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5 Replies to “What is the tax exemption, if one buys two flats by taking housing loans.?”

  1. You can claim interest on the housing loan from one house and from the other house you have to show the rent as income and the interest(that you pay) to bank as expenditure and the balance will be on which you have to pay the taxes.

    So it would be better to claim housing loan where interest paid is more.


  2. You can claim upto Rs. 1.5 Lakh of Housing Loan Interest and the principal amouont you can claim consolidated upto Rs. 1 Lakh u/s 80C

  3. If you have two houses , one for self residence & other for rental purpose , both are treated in different manner.
    For Self occupied , the only deduction available is iro interest on loan with limit of Rs.1,50,000 .
    For other, income is taxable under ‘ Income from house property’ after allowing municipal taxes , standard deduction on repairs & maintenance & interest on loan without any limit .
    In respect of payment of principal amount (both loans) , maximum deduction is available upto Rs. 1,00,000 u/sec 80 C .
    For more details , contact a C.A.

  4. yes ,you are eligible for both interest on loan and repayment of loan in case of more than one house also .there is no bar in income tax act for houses.for self occupied house limit of interest per annum is 150000 but for let out house there is no limit if you have more than house and you have occupied them than you can only show one house as self occupied according to your choice and other house will deemed to be let out .so go ahead you can claim tax benefit for any number of houses.

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