Anyone who is obtained with a certificate from the lender is eligible for a deduction in the interest of the home loan even if it is taken from a companion, employer, or a private lender.
Also it is less expensive to Book an apartment which is under construction. I.T regulation grants you to guarantee the total interest paid during the pre-conveyance time frame as a deductcion in five equivalent installments beginning from the financial year in which the construction was finished or you obtained your condo (by and large this indicates the date of ownership).
Obviously, the most extreme you can guarantee as an allowance each year keeps on being Rs. 2 lakh, in the event of self-involved property (Although, you could be qualified for the extra interest derivation of Rs.1.5 lakh for your first house).
It appears to be legit to buy the new apartment together – say with your spouse, then, at that point, each of you is qualified for an allowance of Rs.2lakh for interest subsidized by each of you, as clarified previously. On the off chance that you have a working child and the bank will part the advance three different ways, each of the three can profit allowance up to Rs. 2lakh each on self-involved property. Add to it the extra interest (if material for leased or considered to be let out property) and thesavings can be critical.
No notional rent will be added to the taxable income for your second self-occupied house property. Thus, if you don’t find a ready tenant you can keep it self-occupied. Do note, that this leeway is available only for upto two houses. A third house which is not let out will still attract tax on its ‘deemed value’. In other words, tax will be calculated at expected rent.
The total loss from house property which can be adjusted with any other income(salary, other source) has been capped at Rs.2lakh. Further, if you are unable to set-off the interest of Rs.2 lakh against any of the heads of income, the (surplus) interest which could not be set-off can be carried forward only for eight assessment years. Additionally, such set-off is possible only against ‘Income from house property’. It becomes a sunk cost if you haven’t let your house on rent.
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