I’ve taken dwelling mortgage two instances. Whether I’m eligible for rebate on each loans or not? Sanchita
Answer: As per basic legislation, there isn’t a restrictions on the variety of homes one can personal in India. Likewise, there isn’t a restriction below banking legal guidelines as to the variety of homes for which an individual can take a house mortgage. Even below the earnings tax legal guidelines there are not any restrictions on the variety of homes for which you’ll declare the tax advantages for dwelling mortgage. One can deal with solely two homes as self-occupied and have to supply notional earnings in case greater than two homes are self-occupied for such additional self-occupied homes. Likewise, there’s restriction of Rs. 2 lakh as much as of loss below the pinnacle home property, which a tax payer can set off towards different earnings throughout the identical yr.
So you should buy as many homes as you need and take as dwelling loans as many instances as you may service primarily based in your earnings. However, the curiosity deduction for all of the self-houses taken collectively is restricted to ₹2 lakh yearly. For the properties that are let our or deemed to have been set free, in case greater than two are handled as self-occupied, you may declare the total curiosity paid as deduction however the loss below the home property earnings shall solely be allowed to be set off towards different earnings as much as ₹2 lakh yearly and the surplus loss shall be carried ahead for set off towards home property earnings in subsequent eight years. Whether you might have one dwelling mortgage or extra, the deduction allowable below Section 80 C for compensation of dwelling mortgage is restricted to Rs. 1.50 lakh along with numerous different eligible objects.
Balwant Jain is a tax and funding professional
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