Income tax benefit on housing loan interest paid
I have once claimed tax benefit for housing loan couple of years back . And now I bought new flat and planning to claim the tax benefit . The flat is still underconstruction and yet to get occupation. Can I avail tax benefit after I get occupation for this flat ? Property is registered on me & my wife both .
Asked 8 months ago in Income Tax from Hyderabad, Telangana
You can claim deduction of interest paid on home loan once the construction is completed. The pre period interest shall be allowed as deduction in 5 equal annual installments.
This is the 2nd house (flat ) .
Asked 8 months ago
Yes, the deduction can be claimed for the second home as well.
In case there is house property loss for second home, it can be carried forward upto a maximum of Rs. 2 lakhs only.
Yes, you can get the tax rebate for the interest paid on home loan for your new house once you receive the possession of the new house.
The deduction for the first 5 years will be as follows:
1. 1/5 of the total interest paid during pre-construction period; plus
2. Interest paid in the year in which you get the possession.
The above interest is subject to the maximum limit applicable.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
CA CS B.Com
You can get the benefit of interest on housing loan after completion of the property. The interest paid till the completion of the property will be allowed in 5 equal annual installments after the completion of the house.
It does not matter whether the house is first or second one.
If your wife is also a joint owner, she can also claim interest on housing loan, if availed by her also.
Yes. You can claim Tax Benefit on the 2nd House