Interest paid on second home & income tax

SSK__ (Service) (24 Points)

08 April 2012  

Hello!

I already have one house at Nerul (dist. Thane), only in “my name”. Bought >7years back. I am planning to foreclose the loan outstanding on this home, in this FY.

I have recently bought another “under-construction” house at Kharghar (dist. Raigad), in joint name, also a joint loan (Me & my wife). Possession in next 1.5 years.

My query:

  1. Can I get the tax benefit for the interest paid for this second home? How & what are the rules applicable?
  2. Can my wife claim tax benefit for the interest paid for this second home?

Please suggest what are the rule applicable & how should we proceed in our tax planning?

Thanks!