Tag: tax benefits

how you can own multiple homes with tax benefits!

how you can own multiple homes with tax benefits!

You must’ve always thought that it’s probably going to be a pain if you own multiple houses- the taxes, the amount of investment done, etc. So so hectic. But, guess what? It’s got its perks as well- enjoy tax benefits on the interest you pay on the loan for multiple houses!

Please correct yourself with regard to the tax issues when it comes to owning multiple, can you? You can own more than 1 house, however, you definitely cannot take more than 1 home loan each time. We live in a democratic country- we’re all free to own multiple properties, houses, etc. Also, you can claim tax benefits too! However, please keep in mind your income, savings etc.- depending upon your salary only will your loan be approved!

Tax benefits on the payment of interest

You are allowed to claim a deduction for interest payable on your loan, which has been taken for construction, purchase, renovation etc. of any of your properties under Section 24b. Just in case, you still want to enjoy this park, but, won’t be able to enjoy at your fullest, there can be a maximum deduction of 2 lakh only PA.

However, just in case, you have borrowed the amount post-April 1, 1999, and the construction has still not gotten over, the claim shall be restricted to only Rs. 30,000.

In certain cases, you may also have let out one of your properties owned by you- you have the liberty to claim deduction for the entire interest paid, without any upper ceiling against the rent received with respect to your property. In cases like this, you own 1+ properties and more than a single house is occupied by you – pick out one of your properties as self- occupied and the rest are taken into consideration as notional rental income, based upon the rent that is fetched from the property must be offered for taxation. Post this, you can claim your tax benefits for full interest paid, for the money borrowed with regard to this property is treated as let- out!

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This perk is available for any commercial as well as residential properties which are/ is owned by you. Even if, you’ve borrowed money from the bank or, a housing company or, from friends as relatives, it’s still applicable for you!

If you pay any interest rates during the construction period, you can claim for 5 equal installments, beginning from the year of the construction beginning till the completion of it.

Tax benefits on repayment of the principal

As per Section 80C, you’re allowed to claim upto 1.5 Lakh only for the repayment of your housing loan which has been loaned out from specific institutions, inclusive of stamp duty of housing loan, cost of registration etc. The overall amount of deduction consists of items like PF contribution, tuition fees, ELSS etc.

This claim is valid only when you possess the property. If you’ve successfully started repaying the principal amount, this exemption is open for you. If you’re taking loans from friends, family, etc., you ain’t eligible for this tax benefit.