Housing loan treatment

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can anybody tell me if a person had repaid a loan of amounting 400000 by taking a fresh laon from other bank so which loan will be considered for treatment in section 24 and 80c details are follows

old  housing loan amount repaid- 463117

new housing loan taken for the construction of second floor and repaid the old balance 1000000

date of last emi of old loan 10/06/2014(7147)

starting date of new loan emi -10/07/2014(13336) 

Replies (2)

Hello,

Tax benefits on interest component of the home loans u/s 24(b) is allowed not only for original home loan but also for second /subsequent / new home loan taken to refinance the first loan. In other words, if the new housing loan is taken to pay off an existing housing loan, tax benefit under section 24(b) is allowed.
 


However, unlike section 24(b), there is no specific mention under section 80c for prepayment of existing home loan by taking a fresh home loan.

 

So what it means is that when you repay the balance outstanding principal component of your first / original / existing home loan by taking a second home loan, you’ll be entitled for tax deduction under section 80c but within the overall limit of Rs 1.5 lakh. Further, when you subsequently start repaying your second housing loan, you’ll be entitled for tax benefit only on the interest portion u/s 24(b) and not on the repayment of principal component u/s 80C.

thanks a lot sir i had posted a query just now please give your comments on that


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