It benefits with 2nd home

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2012 Dear Sir / Ma'am,
I have 2 homes with following details -

1. Old home with no home loan. Father is co-owner. Home offered on rent to a tenant.

2. New home with home loan. Wife is co-owner. Self occupied.

Can the interest payment for loan on second home be treated as expense to claim IT benefit?
What is optimum way to get IT benefit in this situation?

Guest

Guest (Expert)

10 May 2012 You can claim max Rs 1.5 lakhs as interest decution and Rs 1 lakhs as principal repayment

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2012 Thanks Mr. Sharma,
Can I show notional rental income on 2nd home & claim entire interest payment as deduction?

Upgrade to CAclubindia Pro. Subscribe Now!

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

10 May 2012 Dear Author,

House which is occupied by you can not be shown as let out.

If it is possible to give this house on rent then you can claim entire interest as deduction and other house can be occupied by you.

Further, if the loan is also taken by both of you jointly then both of you will be allowed dedction of Rs. 150000 each against respective share of income.

Guest

Guest (Expert)

11 May 2012 But there is concept of DLOP, under which notional rent can be taken and interest deduction can be claimed without any limit.

Self occupied houses can be 2-3 flats but IT Act takes more than one SOP as DLOP, then y cant we take the concerned house as DLOP

Dear expert, pls confirm