Hi,
Yes you can claim tax beneift for two owned houses under section 24 (interest) and 80C (principal).
You can also claim HRA for the rent paid in Hyderabad.
Tax calculation on 2 apartments having home loan in another city
I have 2 apartments in Bangalore .Both I took possession in August 2017. Both are having home loans and planning to give for rent from Nov 2017 onwards . I work in Hyderabad and living in rented apartment . I can claim HRA as I am staying for rent in another state . Could you please explain how can i avail tax benefits for my 2 apartments in BANGALORE and under which sections .
Asked 6 years ago in Income Tax
yes you can avail tax benefits of your 2 apartments , show rental income from apartments under the head Income from House Property and interest u/s 24 , if interest is more than rent received then you can claim upto Rs. 200000 and can save income tax
Hi
The rental income from the apartments in Bangalore shall be chargeable to tax. 30% standard deduction shall be allowed on such rental income. Additionally Deduction under section 24 shall be allowed for the interest on home loan.
Also, Principal repayment of home loans shall be allowed as deduction under section 80C.
You can claim HRA for the flat in Hyderabad.
Hello,
Whatever amount of rent you pay will be first adjusted against the rent received by you and then if any balance amount of rental is left will be taxed.
Any balance of interest can be adjusted your salary income.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Dear Sir,
Please note following :
You can let out the apartment show its income and and can claim interest payment against the said income.
Also you can claim rent payment as HRA since you are leaving in other state.
Looks like I am not getting any advantage from second property home loan . Apart from rental amount set against interest payment . There is no advantage of having second property . Please let me know my understanding is correct . I am eligible for below sections 1) HRA 2) Section 80 C (Max limit 1,50,000) 3) Section 24 (max limit 2,00,000) Could you please confirm even though i have 2 apartments in another state which I let out and paying interest of more than 5 lakhs total for both house .Still i am eligible only for 2 lakhs under Section -24 ?
Asked 6 years ago
Hi,
If you are paying interest for a let out property there is no restriction on claiming interest free that property. You can claim entire 5 lacs subject to the fact that your rental amount from these property is sufficient.
Because, Section 71 has been amended to restrict the set off of loss to 2 Lacs. So if your taxable income from house properties is 3 lacs, then you can claim entire 5 lacs as interest deduction.
Please feel free to call/ revert in case you need more clarity.
I provided exact details for my 2 apartments in Bangalore where I am not residing . Please help me to calculate . Bangalore-House1 Bangalore-House2 Total Principal 48557 60000 108557 Rent 120000 125000 Less Municipal Taxes 5000 5000 Less Standard Deduct 34500 36000 Net Rent 80500 84000 Interest 259140 220000 479140 Loss from House Property -178640 -136000 -314640 Total Loss from House Property : -314640 ( Only 2,00,000 limit) Total Interest : 479140 Remaining interest : 279140 Principal 80C : 108557 Section 24 (Loss from House Property) : 200000 Please let me know under which section i can claim remaining interest amount 279140 . Incase my calculation is wrong please provide the exact calculations and sections where i can claim .
Asked 6 years ago
Hello,
The balance interest over and above Rs.200,000/- cannot be claimed anywhere, that is a cost to the investor. You can claim it as a Cost of Purchase while calculating your Capital Gains though.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
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