Hello, Currently I am having one home loan for which I am paying EMI of 20884 (6542 principle & 14341 interest) and currently no one is staying in this house (House is in Rajasthan). Now I am planning to take 2nd home loan in Baramati where I am currently working & will be living in this house. I want to know whether my principle & interest for this 2nd loan can be added in the 1st loan while claiming the income tax or how it can be done (EMI of 2nd loan will be around 13k) ? Secondly I want to know that now I will be shifting to this new house will I loose my minimum HRA deduction form salary and will it increase my Income tax ? How to overcome the same ? Request you to please advice urgently since I am planning to finalize this property by 13th Nov'17.
Hi,
You can add both the loan amounts for claiming income tax deduction.
Yes, you will loose out the HRA deduction. HRA deduction is available only when you are living in a rental apartment.
Further, there are certain precautions which you need to take while buying a property such as TDS deduction @1% if value of the property exceeds 50 lacs.
Please free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi,
1. Yes, both the loan amounts can be combined. However, interest can be claimed to a maximum of Rs. 2 lakhs. Principal can be claimed to a maximum of Rs. 150,000 under section 80C.
2. Yes, you will lose the HRA benefit. However, the deduction of interest will setoff the tax liability to an extent. Further, one of the houses should be declared as "deemed to be let out" and the other house should be shown as "self occupied".
Trust the above clarifies.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Hello,
Yes you can claim both Interest and Principle for both the houses.
Obviously you will loose out on your HRA exemptions.
Out of your 2 properties, 1 property shall be deemed to be as let out and taxes shall be paid thereon.
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
Hi
Yes, you can combine the amounts from both flats for claiming deductions.
However, you will now loose the HRA benefit as you own a house in the place where you are working.
