Tax Benefits of Owning Multiple Homes
There is a general presumption among the people that one can buy multiple flats in Mohali but is not eligible to apply for more than one home loan at a time. Which is absolutely wrong. As you can own any number of properties, you can also take multiple home loans and claim tax benefits. The amount of home loan depends on your income and your ability to service the loan when it comes to owning multiple properties at a time.
Claim tax benefit on interest paid
For a Self-occupied Property
If you own more than one property with multiple home loans, the principal payment of only the property which is chosen as self-occupied is eligible for the exemption under section 80C. In case, you own only one residential property which is occupied by you, you can claim a deduction on interest payment on a loan is restricted to Rs 200, 000.
Let out Property
In case you’ve rented any property for the whole or the part of the year, this will be considered as a let out property for which the gross value of the property is the annual rent collected. The entire interest on the home loan can be claimed as a deduction when the home loan is taken on let out property.
Vacant or Deemed to Be Let out
If the house is lying vacant, such kind of property is considered as deemed to be let out. The fair rental value earned through such property needs to be offered to tax.
Claim deduction on principal repayment
The principal repayment is a deduction allowed under section 80C. You can claim up to Rs 1.5 lakhs for the repayment of housing loan which also includes the cost of registration and stamp duty of a residential property. This deduction can be claimed only after you’ve taken possession of the property. This benefit won’t be applicable if you’ve started repaying the principal of a home loan before taking the possession.
Claim tax deduction on loans from relatives & friends
Under section 24, you can claim a deduction for interest repayment on loans taken from anyone for the purpose of repairs, purchase, construction, etc. According to tax experts, the loan is not relevant – the usage is. Any interest repayment during the construction period can be claimed in five equal installments, beginning from the year in which construction is completed and possession of the flats in Derabassi is taken.
If you need any assistance regarding a home loan, please call on +91 93160 05252.