You just bought a brand-new house in a posh urban suburb, but now have found a more attractive property far off from the noisy city.
Already under debt for buying a house, you are wondering if taking a second home loan is even an option for you. It is!
As a homebuyer in India, you can avail of multiple home loans at the same time for buying different properties. And, thanks to the Income
Tax Act (ITA), you can avail of plenty of tax benefits on these loans. Read on to find out what kind of tax benefits on multiple home loans you can get.
Tax Benefits on Multiple Home Loans
There are two types of residential properties: self-occupied and let-out or rented. If you own multiple properties, only one of them will be considered self-occupied, while the others will be known as “deemed to be let-out” properties even if they haven’t been given up on rent.
And, if you have taken home loans on your properties, you can claim tax exemption on multiple home loans in the following way:
Multiple home loan tax exemptions are classified into two sections of the Income Tax Act:
- For self-occupied properties, tax deductions of up to Rs. 1.5 lakh can be claimed on home loan principal amount repayments. These deductions can be claimed under Section 80C of the Income Tax Act.
- On both self-occupied and additional properties purchased with a home loan, you can claim tax deductions on interest repayments regardless of the home loan interest rates, loan tenures, or principals borrowed. These multiple home loan tax benefits come under Section 24 of the
Income Tax Act. The maximum amount of interest repayment tax deductions claimed on the loans should not exceed Rs. 2 lakhs. If the rent received on let-out properties is less than the interest payable on home loans taken for those properties, you can carry forward the surplus interest for eight successive years.
These tax exemptions on multiple home loans make the prospect of availing more than one loan attractive for homebuyers. However, you must always articulate your financial status well before committing to additional debt, no matter how small.
If you are looking for affordable home loans, approach Tata Capital and enjoy home loan interest rates start at 8.5% with flexible loan tenures. We allow you the maximum flexibility in choosing your EMI and tenure, and also make the application documentation process entirely hassle-free.
To apply for a home loan, you can either visit our website and fill up the online application form or give us a phone call. If you are confused about any aspect of the loan, use our free resources like FAQs, blogs, and EMI and eligibility calculators to have all your questions answered before you apply.
Apply for a Tata Capital home loan today to buy your favourite properties anywhere in India.