I took out a home loan twice. Can I get a discount on both loans or not? Sanchita
Answer: According to general law, there are no restrictions on the number of houses one can own in India. Likewise, there is no limit in banking law on the number of houses a person can take out a home loan for. Even under income tax laws, there are no restrictions on the number of houses that you can claim the home loan tax benefits for. You can only treat two houses as owner-occupied and have to offer a fictitious income if more than two houses are occupied for such additional owner-occupied houses. There is also a limit of Rs. 2 lakh up to a loss under real estate that a taxpayer can offset against other income in the same year.
This allows you to buy as many houses as you want and take out home loans as often as possible based on your income. The interest deduction for all homes combined is limited to £2 lakh every year. For properties that are rented or are considered rented, you can claim the full interest as a deduction in the event that more than two are treated as owner-occupied, but the loss from the income from the property may only be against other income charge up to £2 lakh per year and the excess loss is carried forward to offset against home ownership over the next eight years. Regardless of whether you have one or more home loans, the allowable allowance under Section 80 C for repaying the home loan is limited to Rs. 1.50 lakh along with various other eligible items.
Balwant Jain is a tax and investment professional
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