CHEQUE BOOK

HT Estates - - Front Page - Harsh Roongta

I have taken a home loan but now wish to take a sec­ond one. Is it pos­si­ble?

—Ra­jit Kan­wal Un­der the pro­vi­sion of the In­come Tax Act and as per the bank­ing laws, there is no re­stric­tion on how many prop­er­ties you can buy or the hous­ing loans you can take. The loan on the sec­ond prop­erty will be avail­able pro­vided your in­come is suf- fi­cient enough for ser­vic­ing both the loans. The tax treat­ment is also dif­fer­ent for those who own more than one prop­erty.

In case you own more than one prop­erty and both are ei­ther oc­cu­pied by you or your rel­a­tives, you have the op­tion to treat one of the prop­er­ties as self-oc­cu­pied. Af­ter a par­tic­u­lar prop­erty is taken as self-oc­cu­pied, the other prop­erty will be deemed to have been let out and a no­tional in­come equiv­a­lent to the rent ex­pected to be re­alised on such prop­erty will be treated as ren­tal in­come in re­spect to the other prop­erty.

The an­nual value of the self-oc­cu­pied prop­erty is taken at nil and a per­son is en­ti­tled to claim in­ter­est pay­ment for loan taken to ac­quire such prop­erty up to a limit of R1,50,000. You can also claim in­come tax ben­e­fits to­wards re­pay­ment of hous­ing loan on both prop­er­ties put to­gether within the over­all limit of R100,000 un­der Sec­tion 80 C.

The tax­able in­come of the sec­ond prop­erty will be ar­rived at by de­duct­ing ac­tual in­ter­est in full payable in re­spect of such prop­erty with­out any limit from the no­tional rent taken above as well as 30% of rent as stan­dard de­duc­tion. You will be able to claim tax de­duc­tion ben­e­fits un­der Sec­tion 80 C in re­spect of the stamp duty paid in re­spect to the sec­ond prop­erty also within over­all limit of R100,000. This ben­e­fit is avail­able dur­ing the year in which you pay the stamp duty.

I am stay­ing in a rented house for which I claim HRA for tax ex­emp­tion. Now if I buy a house in some other city (say Hy­der­abad) on joint home loan with my brother, can I claim both HRA and home loan for tax ex­emp­tion?

—Tarik Me­hdi If you and your brothers are own­ers or co-own­ers of the prop­erty you can get tax ben­e­fits for the home loan re­pay­ments and for in­ter­est pay­ments in the ra­tio of your re­spec­tive shares in the loan. You can also claim ex­emp­tion for HRA for ac­tu­ally paying rent to stay in a rented house. To claim tax ex­emp­tion, it does not mat­ter in which city the rented house is lo­cated. What is im­por­tant is that you should be able to prove that you are ac­tu­ally paying the rent for the house that does not be­long to you. My na­tive place is Kol­ha­pur but I am work­ing in Mum­bai. I want to take plot /flat in Kol­ha­pur. Can I get a home loan and tax ben­e­fits?

—K Me­hta Yes you can get a home loan, which will be sub­ject to your abil­ity to ser­vice it. It is ad­vis­able to take a loan from a bank with branches in both the cities.

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