I want to know on second house pre-emi loan

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I want to know on second house pre-emi loan

1. 2nd house pre-emi tax benefit. 2. 2nd house emi tax benefit. 3. 2nd house tax benefit with joint owner with wife. 4. how to save more tax(if possible)

Profile photo of Swarup Roy Chowdhury Asked By: Swarup 1 replies 0 helpful answers Last Updated: 3 months, 2 weeks ago
  • Profile photo of Swarup Roy ChowdhurySwarup
    Participant

    1. 2nd house pre-emi tax benefit. 2. 2nd house emi tax benefit. 3. 2nd house tax benefit with joint owner with wife. 4. how to save more tax(if possible)

  • Profile photo of Neha JoshiNeha Joshi
    Moderator

    Hi Swarup,

    The answer to your questions in sequence below

     

    The recent budget has capped the amount of loss from ‘House Property’ that can be adjusted aganst any other income at Rs 2 lacs. Hence whatever losses from house property arise as a result of high interest and principal repayments are now capped at this figure. The rules to claim the interest amount for your property are as follows.

    1. 2nd house pre-emi tax benefit – You can claim tax benefit for the entire amount of interest paid for pre-emi interest. However for the pre-emi benefit you need to divide the entire interest paid prior to possession of your house / property by 5 and claim 1/5th amount each year for 5 years.
    2. 2nd house emi tax benefit – the EMI can be claimed as deduction under two heads. The interest payment deduction can be claimed u/s 24 under the head Income from House Property and the principal amount can be claimed u/s 80C up to Rs 1,50,000. There is no limit for the amount that can be claimed as a deduction.
    3. 2nd house tax benefit with joint owner with wife – in case there is joint ownership then the deduction will also be claimed in the proportion of ownership, in case the wife is also working and contributes to the repayment of EMI. In case you can prove that wife is not earning and does not contribute to the repayment then you can claim the entire deduction.
    4. how to save more tax (if possible) – Apart from the interest and principal repayment deductions you can also claim processing fees paid as a deduction u/s 24. Registration and stamp duty paid while buying the property can also be claimed as deduction u/s 80C.

    For more detailed information please drop your enquiries at hrblock.in or request a call back on -http://tax.hrblock.in/retailefiling/#/Retail/income-tax-efiling.

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