Is any Number of Housing Loans eligible for Tax exemption u/s 24?

‘Income from House Property’

It is important to note that the interest paid on a home loan is not directly deductible from your salary income. What actually happens is that a calculation of ‘Income from House Property’ is made for each property you own. If such a calculation results in a loss, it is allowed to be set off against your income from other heads.

“Income from House Property” is applicable in case a person owns more than one house. One house is assumed as self occupied and the other as rented out, even if it self occupied or unoccupied. The rental value is the fair market rent prevailing or value as per ready reckoner or actual rent received, whichever is higher.

The assessee can decide as to which house to declare as self occupied and which as rented out. This can be done by calculating the ‘Income from House Property’ on both the houses.

Deductions allowed from the rental income are:

• Taxes paid to municipality.

• Standard deduction, 30% of rental income.

• Interest paid on housing loan.

In case of 2nd house (which is treated as rented out) the interest paid on housing loan (which is treated as loss) does not have any limit u/s 24(b). The limit of Rs 1.5 lakhs is only for one self occupied house.

The principal repayments of both the housing loans are deductible u/s 80C up to Rs 1 lakh (overall limit of 80C).

For claiming deductions u/s 24(b) and 80C the following conditions should be fulfilled:

• The assessee should be the owner of the house, either singly or jointly.

• The assessee should be the co-borrower of the housing loan.

• The assessee should repay the housing loan from his own income. If both co-borrowers are repaying the housing loan then the deduction allowed is to the extent of repayment from each income or the proportion in which the loan is shared.

HMT

Section 24 has a reference to section 23 (2) which defines the eligibility. It states:

"(2) Where the property consists of a house or part of a house which-

(a) is in the occupation of the owner for the purposes of his own residence; or

(b) cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him"

It means you have to be a resident in the house to claim tax benefit, or you are not residing there only because you are employed/working else where paying rent.

Yes you can take loan for more than one house and claim income tax rebate subject to following conditions namely.

1- Only one house shall be treated as your self occupied house and income from this house will be nil. Other houses will be treated as let out house and rent from them will be taxable.

3- Claim of all housing loan interest will be subject to maximum limit of Rs 150000.00 and principal amount under section 80 C upto to Rs 100000.00 only.

confident,you are able to declare exemption in earnings tax with ur economic employer fact as information. you're able to prefer to get the interest fact from the economic employer as yet yet another information. And in case you will stay indoors the living house you are able to deduct upto a million.5lakhs of interest you have paid to the economic employer in a year or in spite of if it particularly is plenty much less the particularly interest you have paid plus upto Rs.20,000/-in serious quantity.

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