Second Home Loan Taxation
Understanding Tax Deductions Through Interest & Principal on Second House Loan
Hello and welcome to Part 10 of the
income tax education series brought to you by H&R Block, the global leader in
filing income tax returns. Today we will understand how you can claim interest and principal
repayments as deductions from taxable income if you have bought a second home and
have taken a home loan for it.
You can claim deductions under section 24 for interest repayments as well as under
section 80C for principal repayments, stamp duty and registration charges. In fact
you can claim the interest deduction without any limit if you are not staying in
the house or have let it out. This will enable you to claim huge tax benefits. E.g.
Pooja owns a house property and claims deductions for the repayment on home loan
on this property. Pooja stays in this house and hence claims interest repayment
deduction of up to Rs. 2,00,000 and principal repayment deduction of Rs. 50,000. She
has now bought another house and taken another home loan for this house. The good
news is that she can claim tax benefits even on this loan. In fact she can claim
interest repayment for the entire interest amount without any limit of Rs. 2,00,000.
This can be a very good tax saving opportunity for Pooja.
At H&R Block we make sure to ask such questions to you about the number of house
properties owned to make sure you get all the eligible deductions.
I hope you found this useful. If you have any further questions on this topic, please
feel free to ask us using #AskBlock.