Yes, it is possible to get tax benefit on the second home loan in the same financial year. The tax benefit on two home loans taken for the purchase of two self-occupied properties can be claimed under Section 24(b) and Section 80C of the Income Tax Act, 1961. Currently, an individual can claim tax benefits on. So
Earlier, if an individual had more than one house then he/she could claim home loan tax benefit only against self-occupied property, which could only be one. For the second property, however, the individual had to make tax payments based on notional rent. Notional rent is the amount or income you would have received if you had put the house on rent. But in the Interim Budget 2019, a proposal was put forth wherein an individual can claim his/her second home as self-occupied property. The proposal was introduced and accepted to help borrowers save more tax.
Home Loan Tax Benefit 2019-20
|Section of Income Tax Act||Nature of Home Loan Tax Deduction||Maximum Tax Deductible Amount|
|Section 24(b)||Interest||Rs.2 lakh*|
|Section 80C||Principal (including stamp duty and registration fee)||Rs.1.5 lakh|
How to Claim Home Loan Tax Benefit?
The process to claim tax benefits on a home loan is given below:
- Make sure the residential property is in your name. In case of a joint home loan, ensure to be the house’s co-owner.
- Calculate the total amount you can claim as a tax deduction.
- Hand over your employer the home loan interest certificate so that he can adjust the TDS.
- On failing to follow this step, you need to file your IT returns.
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Self-employed borrowers need not submit these documents. They must keep these handy to provide if a query arises in the future.