Home loan on second property

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Arvind Semlani (Querist)
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14 January 2016 Hello,

My query is as under:

I have a house in joint names of myself and my wife in Mumbai where we are currently residing. I had taken a loan and have repaid the same. The current home where we stay is loan free.

I have now purchased another home in Karjat, again on joint names and am taking a home loan. The property is under construction and possession is around 3 years. I request you to kindly guide how can i take the maximum benefit of the home loan for both of us. I am a self employed person and my wife is a house wife but part of my income is shown as her income. So she is also self employed.

I understand second home also attracts wealth tax. Second home, once possession taken, if not let out is considered to be deemed let out and the rent income is considered as income and added to existing salary. This is based on the knowledge I have.

Await your reply at your earliest.

Regards

Arvind

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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18 January 2016 Yes the second home will be deemed to be let out but from the notional rental income you will get deduction of 30% as repairs and interest on borrowed capital. Moreover you will also get repayment of home loan deduction u/s 80C. For joint income tax benefits both husband and wife should be joint owners and joint borrowers.