second property

This query is : Resolved

sumit khare (Querist)
Follow

14 December 2010 I have taken one Flat in the joint name of myself & wife and has taken home loan .i am also claiming tax rebate for interest and principal part. I wish to purchase one plot (land) ,should i take it in my wife's name alone .If i take it in the joint name & through loan for building a house in the land then what would be tax implications .can i claim interest part of the loans for both properties, I have learnt that my second house rental value will be considered even if it is vaccant.what if i take the property in my wifes name alone.

taxindiaconnect

taxindiaconnect (Expert)
Follow

14 December 2010 The interest rebate is for one self occupied house only. If you buy another plot and pay interest, no tax benefit accrues unless you have some rental income from this property.