I have two loans running, one house is on rent, the other is not occupied. do i get benefit of deduction from both the intrest paid to bank, or only one.
1 Answers
you will get interest benefit on both loans. but for both of them, you will have to show rental income. one house is already on rent and for other one, you have to show notional income from other home even though it is not rented actually.
For each house, From Gross Annual Value, deduct 30% as your standard deduction, deduct municipal taxes paid, this amount will be your net annual value. This amount will be taxable in ur hands.
thanks for the help, it was really usefulhow do i find the gross annual value, is it available on net? in my question, i wrote as vacant, but one house is rented and the other is self occupied
If one house is rented and one is self occupied, you will max home loan interest exemption for 1.5 lacs on self-occupied and no maximum limit on exemption.
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