amitj
1
Dear Sir, I have taken my first home loan in 2012 for a flat in Mumbai for 72Lakhs, I am staying in this flat. For the same I am claiming an interest in income tax for 1.5Lakhs. Now I am taking another loan for a flat in Ahmedabad for 25 Lakhs with 20 Lakhs loan. I heard that the second home loan interest can be fully exempted from Income tax. Is it true and if it is How will this be done in your calculator.
Amit
For second house which is not self occupied, you can deduct whole interest payment from rental income to reduce your rental income tax liability.
Say, if you paid 2 lakh as interest and received 3 lakh as rent on new property, your net taxable rental income would be 1 lakh only.
there is no provision as such that interest on your 2nd home loan would be fully exempted from tax..
