Hello, I have taken a home loan on 5th august 2019 for 28.8 lakhs in which we are living & i taken a mortgage loan on 2nd February 2020 of 46 lakhs for another house which is gifted to me by my parents and this property is been rented. Both are 30 years old flat. 1st house - we are staying -home loan emi 26000 2nd house - rented -mortgage loan Emi 62000 How much income tax exemptions will i get?
The tax benefits are available to individual and not others.
Till 1.5 lakhs are eligible for interest on home loan for individual u/s 80EEA. plus maximum limits can be benefited by individual 3.5 lakhs of interest under this section of 80EEA.
You will be eligible for only one home and one property, The first preference will be given to 28.8 lakhs home loan.
Apart from interest component, excemption of principal also available + 1.5 lacs of stamp duty and registration.
The Principal portion of the EMI paid for the year is allowed as deduction under Section 80C. The maximum amount that can be claimed is up to Rs 1.5 lakh. But to claim this deduction, the house property should not be sold within 5 years of possession.
Additional 50,000 on 28 lacs laon.
On interest - upto 2 lacs per year.
Under Section 24 of the Income Tax Act, an individual can claim tax deduction of the interest payment on the housing loan up to a maximum amount of Rs. 2,00,000. However, there is no limit on the interest payment deduction of the property is rented.
As per income tax act:
Section 24 : Exemption limit is Rs. 2 lakhs (for self occupied house)
No limit (for let-out property)
Section 80C: Rs.1.5 lakh from Principal (including stamp duty and registration fee)
Section 80EE: Rs.50,000 Additional interest (for first-time buyers)
Current Home Loan Tax Benefits(FY 2020-2021)
This section deals with the yearly deductions related to the interest you pay on your property loan. The relevant details are given below:
Home Loan Tax Benefits under Section 80C – Principal Deductions
Section 80C deals with the principal amount deductions:
On the principal amount, Rs. 1.5 lakh can be claimed as tax benefit under Section 80C of the Income Tax Act.for the first house
2)You can claim an additional interest amount of up to Rs.50,000 every year till you repay the loan.
3) your property is a self-occupied one, you can claim a maximum deduction of Rs.2 lakh.
Kindly answer for second property as mortgage loan.how much exemptions we can get,it’s a rented property. KINDLY GO THROUGH THE FULL QUESTION AND ANSWER ACCORDINGLY
You may also go through the answers given properly.
If you let your property out on rent, you can claim any amount you’ve actually paid as interest.
There is no limit.
You can claim tax exemption from a loan against property if the loan amount is utilized for business purposes. In such cases, benefits can be claimed against interest paid and associated fees and charges incurred. These payables can be claimed as business expenses under Section 37(1) of the Indian Income Tax Act.
2)Unlike home loans, you cannot claim tax exemption form loan against property under section 80C, as under this section an individual can only claim exemption against fully constructed residential properties.
Rent on the second house will be added to your income and will be taxed as per the applicable tax slab. However, you will be allowed to deduct the interest on the home loan from the notional rent.
Tax Benefits on Home Loan (FY 2020-2021)
The following table gives you the tax benefits under the corresponding sections of the Income Tax Act, 1961.
Income Tax Act
Maximum Deductible Amount
Section 24
Rs.2 lakh (for self-occupied house)
No limit (for let-out property)
Section 80C
Rs.1.5 lakh from Principal (including stamp duty and registration fee)
Section 80EE
Rs.50,000 Additional interest (for first-time buyers)
Current Home Loan Tax Benefits(FY 2020-2021)
This section deals with the yearly deductions related to the interest you pay on your property loan. The relevant details are given below:
Home Loan Tax Benefits under Section 80C – Principal Deductions
Section 80C deals with the principal amount deductions:
Tax Benefits under Section 80EE – Additional Interest for First-Time Buyers
If you’re buying a house for the first time, you can claim the following interest deduction in addition to the benefits already mentioned above under Sections 24 and 80C:
Deduction for Joint Home Loan
If the housing loan is availed by two or more persons, each of them is eligible to claim a deduction on the interest paid up to Rs.2 lakh each. Tax can be deducted on the principal paid as well for an amount up to to Rs.1.5 lakhs each. However, all the applicants should also be co-owners of the property in order to claim this deduction. Therefore, a joint home loan can give you greater tax benefits.
Home Loan Tax Benefits of Owning a Second Property
As per the current provisions, if you have more than one self-occupied property, then only one of them will be accepted as self-occupied. For the other property, you will have to pay tax on the basis of notional rent. You can choose either of your properties as the self-occupied one to maximise tax benefits.
As per the finance budget announced in February 2019, it was proposed that the second self-occupied home can also be claimed as a self-occupied one instead of it being deemed to be let out on rent. This will prevent the incidence of paying tax based on notional rent, helping the owner save money. It will also help you claim tax deductions for the second property as well.
1. You can claim upto 1.5 lakh extemption under section 80C on payment of principal amount and 2 lakhs on interest paid in a single financial year under Section 24 of IT act.
2. You can also claim extemptions under Section 37(1) of IT act on interest paid for loan against property but total limit will be 2 lakhs on interest paid combined with Section 24.
Yes, you can avail benefits from both the EMIs as per section 24 and can show maximum 2 lakhs of interest paid through emi on home loans. But you need to show both houses as self occupied and not rented.