Hbl query

A Tax Payer had availed House Building Loan to purchase a flat last which has been completed last year now the tax payer has occupied the place in his name & all land deed in his custody. During the period of HB loan he had availed 80C benefit.

Now this year the tax payer again want to purchase a flat taking HB loan but he will reside at previous flat. Now the query is: -

1) can the tax payer avail 80C benefit for availing HBL for his 2nd flat for Principal & Interest of the HBL

2) If the tax payer gives rent in the 2nd newly purchase flat, will it affect in his income

Kindly guide the problem

Replies (1)

Dear Abhijit,

1)(a) Under Section 80C the repayment of principal amount of laon is only eligible for deduction. It is not written anywhere that the repayment of loan for taking 2nd house is not eligible. So yes the deduction of repayment of principal amount of loan is eligible for deduction under Section 80C.

1) (b) You can claim deduction of interest payable on home loan under Section 24(b). The actual amount of interest paid on 2nd home purchased is eligible for deduction even if it exceeds Rs. 1,50,000/-

2) He has to show the rental income from his new house purchased while filing his ITR. This is written in Section 23(3) of the Income Tax Act, 1961

Regards

Rohit Gupta

RHT1203 @ GMAIL.COM

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