Sir, I am a central government employee. I own one flat already and intend to construct a house on a plot owned by me. The loan on my first property is still in force and I am claiming income tax relief on accrued interest. I plan to construct the house on the plot (second property) after availing bank loan. Now, can I take accrued interest relief on second property also? After checking from my office, I found that the form 16 issued by my employer (Government) considers only one property. Kindly advice on how I can avail income tax benefits on my second property.
1 Answers
You can only assume one property as self-occupied. Home loan interest exemption on self occupied property is maximum 1.5 lakh.
In case of other property, you need to show a notional rental income as taxable and then you can claim tax benefit for whole interest payout (without any max limit).
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