CHEQUE BOOK

HT Estates - - HTESTATES - Harsh Roongta

I have two hous­ing prop­er­ties. The sec­ond one was pur­chased re­cently and both are taken on hous­ing loan. To­tal loan amount goes to (₹13 lakh to ₹ 6 lakh) and the re­main­ing amount is ₹ 19 lakh. I am stay­ing in one house and my rel­a­tives are living in the sec­ond one so I don’t have any in­come from hous­ing prop­erty. I am al­ready tak­ing tax ben­e­fits on the first prop­erty. Can I avail tax ben­e­fits on both prop­er­ties? Can I also ap­ply for tax ben­e­fit on stamp duty of sec­ond prop­erty - some­thing that I have al­ready done for the first prop­erty?

—Pra­teek Dixit There is no re­stric­tion on the num­ber of prop­er­ties a per­son can own under the pro­vi­sions of the In­come Tax Act. How­ever, in case a per­son owns more than one prop­erty and both are ei­ther oc­cu­pied by him­self or his rel­a­tives, the per­son has to treat one of the prop­er­ties as self-oc­cu­pied. Once a par­tic­u­lar prop­erty is opted as self-oc­cu­pied the other prop­erty will be deemed to have been let out. A no­tional in­come equiv­a­lent to the rent ex­pected to be re­alised on such prop­erty will be treated as rental in­come for this.

The an­nual value of the prop­erty treated as self- oc­cu­pied is taken at nil and a per­son is en­ti­tled to claim in­ter­est pay­ment for loan taken to ac­quire that prop­erty up to a limit of ₹ 2 lakh. The tax­able in­come of the sec­ond prop­erty will be ar­rived at by de­duct­ing ac­tual in­ter­est payable in re­spect of such prop­erty with­out any limit from the no­tional rent taken above as well as 30% stand- ard de­duc­tion on the no­tional rent of­fered for tax.

You can also claim in­come tax ben­e­fit to­wards re­pay­ment of hous­ing loan within over­all limit of ₹ 1.5 lakh under Section 80C.

You will be able to claim tax de­duc­tion ben­e­fits under Section 80 also in re­spect of the stamp duty paid in re­spect of the Sec­ond prop­erty within the over­all limit of ₹ 1.5 lakh. You can do this even if you had claimed a sim­i­lar de­duc­tion for an­other prop­erty in an­other year.

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