CA Sandeep Kanoi

People buy a second home for many reasons, which, inter-alia, include as an investment for capital appreciation; to use it as a holiday home; to get a regular stream of income by way of rentals; or to diversify their investment portfolio.

However, it is important for an individual, who is planning to buy a second home, to understand the tax implications under the Income-Tax Act 1961 of owning and maintaining the second home.

Second House is Self-Occupied

If an individual owns more than one house property for his use, then under the provisions of the Income Tax Act, 1961 (the ‘Act’), any one property as per his choice is treated as self-occupied and its annual value is computed to be nil. The other house property is deemed to be let-out and a notional rent as per the provisions of the Act is computed as the taxable income under the head ‘Income from House Property’. In other words, the second house is treated as being rented-out and its estimated rental income is treated as taxable income.

Even vacant house has tax implications 

3d Home IconIf you own more than one  Self Occupied Properties (SOP), you have a choice to treat any one of the properties as SOP. The other such property (ies) which lies vacant will be treated as Deemed Let Out Property (DLOP) under the Act.  If a property is treated as a DLOP, it is effectively put at par with a let out property as far as taxation is concerned. Hence, a notional rental value (method to calculate such value prescribed under the Act) is considered as the gross taxable rent for such property. You are allowed to claim a flat deduction of 30% for repairs and maintenance charges.

Second home is used as a holiday home

As the benefit of self-occupied property is available for only one home, the estimated annual rent will be considered as the taxable value.

Second House is Let-Out

If the second house is let-out to a tenant, the actual rent received, subject to certain conditions, is treated as the taxable income under the head ‘Income from House Property’.

Deduction for Municipal Taxes

The taxes paid to the local authority, generally the municipal taxes, are allowed as deduction in the financial year, in which such taxes are actually paid. This is irrespective of whether these taxes pertain to the current financial year or the earlier year. Therefore, an individual should keep a track of the municipal taxes paid and claim this deduction accordingly.

Deduction for Repair & Maintenance

Further, a sum equal to 30% of the annual value of the house property is allowed as deduction towards repair and maintenance charges. It is pertinent to note that this deduction of 30% is a fixed percentage, irrespective of the actual amount incurred by the individual i.e., irrespective whether an individual incurs more or less amount, he can only claim a deduction for 30% of the annual value of the house property.

Interest Deduction

Whether the second house property is deemed to be let-out or actually let-out, the actual interest paid on the housing loan is allowed as deduction. This is contrary to the case of a self-occupied property, wherein the maximum interest on housing loan is restricted to Rs 150,000 p.a. ( 2 Lakh from AY 2015-16), subject to certain conditions.

Effectively, if Assessee owns more than one house property & is kept for own use,
  • one house property, as per the choice of the Assessee, shall be treated as self occupied house property and the annual value shall be treated as Nil.
  • Other house property shall be deemed to have been let out and the tax is payable on notional rent as the property is deemed to have been let out and is taxable on the basis elaborated above.
In respect of such deemed let out house property, one can claim interest as deduction u/s 24(b) without any monetary limit. However, for the second house property, no deduction is available for repayment towards the principal portion of housing loan under section 80C.

WEALTH TAX ACT, 1957

a) Under the Wealth tax Act, 1957, Section 5(1) indicates that an assessee can hold one property as a self occupied property and the same be exempt from eligible assets liable to Wealth tax.

b) If an assessee, holds more than one property, then the second property for the purpose of Wealth tax has to be valued as per the Wealth Tax Rules 1958 and the value in excess of Rs. 30,00,000/- is liable to Wealth tax. However if there is any liability against the said asset, the same is to be deducted before computing the taxable wealth.

c) If the assessee holds more than one property and the second property as let out for more than 300 days in previous year, then such property is not considered as eligible asset for calculation of taxable wealth.

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95 responses to “Taxability of second House under Income Tax Act,1961”

  1. Priyajit Ghosh says:

    Hi, My mother is having 2 flats in different locations. One is self occupied & other is let out. Now another flat which both me & my mother are purchasing as joint owner & scheduled to be completed by 31st March 2018. Now due to some official issues, I am thinking to register that flat Only in my mother name, then what will be the tax implication, wealth implications on that new flat (3rd one for her) ?
    Another doubt, can we claim deduction of the municipality tax that we pay annually in income tax? If yes, under which section can she claim deduction in Income tax?

  2. JAYDEV MODI says:

    My client has 2 house 1st house name of his mother and 2nd own name. but currently my client is living with his mother so 2nd house is vacant .WHETHER 2ND IS DEEMED TO BE LET OUT OR SELF OCCUPIED PLEASE GUIDE ME.

    THANKS ‘
    REGARDS
    JAYDEV MODI

    • sk sharma says:

      i have a flat in the joint name with my wife which we are using as our residence.we have another 25% built 10 marla house again in the joint name with my wife.10 marla plot was purchased by us in 2008 and built 25% in 2009.on this plot we also paid enhancement charges amounting to Rs 175000.i am filing it return and my wife is a housewife and is not filing return.Through an over sight i have omitted to include the income on 2nd property in my returns for all these years.The house was let out for nearly 8 months in a year for Rs 3000/-.please guide me as to what i should do to rectify the position.Regards
      sk sharma

  3. Jitendra says:

    Dear Sir,

    I have purchased the second flat on 12 Sept 2016. I have sold my old flat on 26.5 lac ( 12.42 lac purchase in April 2010) on 2.03.17. Could you please let me know what are the implications in the Income Tax.

    As on now I am living in Second flat and am salaried person.

  4. Jinav Satra says:

    I own 2 House Properties. 1 in my name and the other is jointly owned by my Son. I reside at Property 1 which is owned by me (SOP) and my son resides at Property 2. Will property 2 be considered as DLOP for me? If yes till what extent?

    Also can my son claim it as his SOP and still do I need to consider it as DLOP?

  5. Mani Pillai says:

    One of my client has own house in goregoan & has given it on rent since his office is at mulund & it is very difficult for him to travel from goregoan to mulund. He is currently living in thane on a rented flat.

    Also he had booked a flat in thane & has got a possession of flat in last month (i.e. Jan 17).

    Both the Properties are brought on loan

    Now my question.
    1. Can he get HRA Exemption against the rent paid for the rented house at Thane.

    2. Can he get the Full Interest benefit for both the house at thane & goreqoan considering rental income to be added while computing Income Tax

  6. Abhijeet says:

    I have one flat self occupied flat in Pune which loan has cleared last financial year.
    I want to buy one more flat in Pune by taking loan from SBI. The new flat will be SOP and current one will be rent out.
    Please guide me what is the benefit of income tax. How much Interest benefit?

  7. Dinesh kumar says:

    Hi
    I have two flat. On first flat I am staying and taking house lease by company. Second flat given on rent and also I have taken loan on it only.
    Pl clarify me for income tax benefit and tax liabilities.

  8. Sanjeev Arora says:

    I am living in my own home in Delhi. I have at present my loan. I want to purchase a flat in Gurgaon and i want to take Home loan. Can Home loan Interest be exempted from Income tax.

  9. Amit says:

    I have one home loan and now has still to pay Rs.1100000/- in next 17 yrs.. and my salary is now Rs.68000/- .. should i increase my EMI from 11925 to 28000/- to finish it by next 4 yrs or should i go for purchasing a new house with out closing the home loan account… i want a bigger house now looking at the new needs of family.. pl suggest

  10. Sathish says:

    I have home loan in bangalore(karnataka) and it is self occupied. I am planning to let it for rent and move to rent house because of travelling time taking for me to reach office.

    Now I am planning to buy another home (with 4 flats) at my native(andhra pradesh). Here my parents will stay in 1 flat and remaining will be rented out.

    Can you tell me in what way i can get maximum tax exemption?

  11. Surajit says:

    In case one person owned two house properties (“A” with MV Rs30 Lacks & “B” with MV Rs70 Lacks) at different cities (“X” & “Y”) and house loan taken for both, in such case the person is living property B in Y city. Will there be any obligation if the person claim Property B as Deemed to Let out and Property A is self-occupied? Or since the person living in Property B it will has to consider as Self Occupied and Property A would be Deemed to Let out?

    Thanks.

    • Pavan Tripathi says:

      exactly my situation and hence confusion.. Dear Surajit…could you get answer to your question from any qualified tax consultant.. Please share your findings here.

  12. Srinivas Srikanth V says:

    Hi

    It was nice article. I have one doubt on rental income and taxation of second home loan.
    We recently bought the second house jointly (Me + my mother).
    since My mother is housewife and don’t have Income I want to give the rental income on new home to her.
    At the same time I am the one who pay the EMI on the same can I claim the 100% interest on the home loan and 0 Rental Income.

    Thanks in advance,

    Regards,
    SRinivas Srikanth V

  13. Bhavisha says:

    My brother is having a house in Gurgaon in joint name and also home loan in joint name. Now he is planning to buy a new house. I want to know the tax implications and also want to know how he can get maximum benefit from Tax

    Thanks
    Bhavisha

  14. Bhavisha says:

    My brother has a house in Gurgaon in joint name with wife and also joint loan for the said house. Now he is planning to buy a second house. I want to know the effect of tax for the second house. What are the tax benefits he can get

    Thanks
    Bhavisha

  15. Ravi Jankar says:

    I am staying at Thane on rent @ 20000 per month. I had one flat in Pune on which home loan is going on. Annual interest is around 1 lac. Now, I am planning to buy second flat (Ready to move) in Ahmedabad city and will be rented out. Can I claim Tax Exemption as per following.

    1. HRA Exmpention on Rental flat at Thane
    2. Pune Flat Principle and Interest (1.5 lacs cap) as a first home.
    3. New Ahmedabad flat . zero Principle and completer interest amount (No cap) as a second home.

    Regards,
    Ravi

  16. M S says:

    I have a house in Delhi which is vacant/self occupied. I have purchased a house in Chennai after retirement taking bank loan of Rs 30 lacs thru Court auction for 55 lacs in April 15 1nd possession was handed over to me in August 2015. Please clarify how to claim Income tax benefit to be most beneficial and what is going to be my wealth tax liability?
    Secondly If I rent out my Delhi flat, how will it affect my Tax liability?

  17. S Sundar says:

    Sir, I have a property at Coimbatore where my dependent parents are staying. I claim IT relief for the same. I am working and staying in Chennai and getting HRA also. Now i bought a house in Chennai for self occupation which is under construction. It will be handed over by Oct’16 and I am paying pre-EMI for the loan amount. Can I claim tax relief for my second loan also, what is the procedure? Kindly help me to understand the prevailing rules on this. Thanks and Regards.

  18. Chetan says:

    Hi, I stay in Pune. I have one flat in Nagpur which is empty as of now and has small home loan. Now I am planning to buy home in Pune and it will have bigger home loan. So is it legal to show my nagpur flat as SOP and the one I would be buying as let-out? This way I would be able to save lot of tax.

  19. Neeraj Agarwal says:

    Sir,
    I own , two residential flats. I live in one flat and the other is rented out. Both flats have housing loans and are being repaid. However, the flat i live in has big housing loan, and therefore big interest outgo, whereas flat i rented out has small loan and small interest outgo. with a view to aviling tax benefit of interest deduction under house property loss, I wish to show the rented flat as self occupied and flat i live in as rented out and avil tax benfits. Is it possible and allowed under the income tax rulles.

  20. N RAMESH says:

    Sir,
    I have two flats on my name at Hyderabad. One flat is let out and there is no loan on this property. The second flat is self occupied and some loan is left out with the flat in SBI. Now, I would like to purchase a third flat at Bangalore on bank loan and may/may not be let out. Kindly advise me on the tax implications.
    Thanks,
    Regards,
    Ramesh

    • S K Shah says:

      I have one flat which is given on Rent.on this flat I had not taken any loan.
      I want to buy one more flat by taking loan from SBI.
      Please guide me what is the benifit of income tax. How much Interest benifit? And any other benefits

    • P. Sahoo says:

      Dear Shri Ramesh,
      If you got reply please forward same to my mail – hingula2009@gmail.com.
      Thank You.

  21. Bharat Pawar says:

    Hi,

    I bought one 2BHK for me in March 2015. (Home loan of 35 Lacks).
    Then I bought another 1BHK with my brother in Nov 2015. He is owner & I am co-owner. (Same applies in borrower & co-borrower in home loan – 23.5 Lacks Loan).

    I am going to get possession of both flats in next 2 weeks.

    I am paying full EMI of first home loan.
    For second home loan , I am transferring some amount of money to my brother’s account as ECS for second loan is applied on his account.

    So how can I get tax benefits in this case?

    Thanks,
    Bharat

    • Naresh says:

      I am enjoying the Benefit of Tax on First Home Loan from HDFC Bank.If I square up First Loan from my Income and like to purchase Flat partially from Bank Loan and partially from small plot Income which is to be sold to purchase this Flat.What is the Tax implication.

  22. Tejas K says:

    Dear Sir,

    Currently I living in Ankleshwar-Gujarat in my mother house.

    I have purchased one home in Vadodara-Gujarat in my name & second home in my father’s name with second name in mine as my father is retired person.

    Can I get full Tax benefit of Interest & Principle repayment for the same.

  23. Feroz says:

    Sir,
    I bought property in bhopal in 2007 which is self occupied by parents and am paying EMI around 12K per month in which interest around 1 lac & taking tax benefit for same for both principal and interest.
    Recently have bought flat in pune which is also self occupied for which am paying EMI around 50K per month. My Query is how can i take maximum tax benefit from 2nd home loan. Can i show 2nd home loan as self occupied?
    Please suggest
    Thanks

    • KC Ramakrishnan says:

      Please adivice me whether I am eligible for exemption from income tax for the land purchased and only constructed the foundation of the house. Balance construction will do after one year due shortage of fund.

  24. Sunny K says:

    Dear Sir,

    I have two properties. I live in the property in Pune against which I pay interest again loan too. the second property is in Delhi and is on rent of 30K /month. The rental value of the Pune house is lower at 16-18K/ month. Can I show House in Delhi as Self occupied and the Pune one with notional rent ?

  25. Nitesh says:

    I’m already paying EMI on the first flat. Is it advisable to own second house to avail Income tax benifits?

    what are the implications of owning second house as per IT rules?

  26. RUPENDER says:

    RESPECTED SIR,
    I HAVE SELF OCCUPIED HOME AT KOTA RAJASTHAN. I WANT TO PURCHAGE ANOTHER HOME IN SAME CITY BY BANK LOAN.CAN I CLAIM ITS INTRES AND REPAYMENT INSTALLMENT FOR TAX REBATE.
    KINDLY REPLY ME BACK.
    THANKS.

  27. Manoj says:

    I took a home loan in my living city, but I want second loan in my native’s property. I want to know that can I take tax benefit on both loans and How?

  28. Lalit Goel says:

    Hi,

    Presently I am based at Pune and residing in rented house and claiming HRA benefits.

    I owned a house at Delhi which is self occupied presently and same was purchased in 2010 through Housing Loan.

    I also booked one flat during year 2012 at Noida which is ready for possession, second flat was also purchased through Housing Loan.

    I want to foreclose loan of my first Delhi house as I can’t afford EMIs of both House.

    I will declare my second house as let out for purpose of income tax benefits and claim complete interest.

    Now my question is that to claim “Income/Loss from House Property” for second let out property, is loan on First self occupied property is compulsory or not.

    Regards,
    Lalit Goel

  29. Tarasankar Dasgupta says:

    I have flat after availing Bank loan in Kolkata and have been availing interest and instalment reliefs. I have another flat jointly owned by three family members (My investment is Rs12lac and 20% is my share)in Bangalore after availing Bank Loan.Both the properties are occupied by our family members and not let out. I am a pensioner and use to reside in both the houses for my rest and recuperation. I have pension and inerest income.
    Query :
    *Whether both the houses are classified as self occupied
    *Whether interest paid in bank loan can be availed as interest relief from tax.
    *Whether Ishould be outside perview of wealth tax as my investment is below Rs30lac

  30. Asgar says:

    I have a house in mumbai self occupied. We have purchased a flat in pune in joint name of myself,my wife and my son all three have contributed towards cost but not equally. Will it be taxable? If yes how to ascertain annual value the property is located out side pune municipal limits in a village. My wife is house wife with no taxable income,can each one of us has to show one third value in our return? Pl guide,thanks

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  32. kumar says:

    dear sir

    I am having house loan, now principal is equivalent to my pf amt. shall I close the loan amt against PF. and go for 2nd house. Is it worth to go against the pf amt.

    pl advise – benefits and implications. Considering my age factor(around 42).

  33. Chaitanya says:

    I am having a own flat at Pune(shown as occupied) and for this I am claiming IT benefits (principle + Intrest both)
    I am working in Navi mumbaiand planing to buy resale flat in NAvi mumbai, which will be Co owned by Wife & me, wife is non taxpayer, pan card holder.
    The new flat will be occupied.
    My queries
    1. Can I get IT benefit for 2nd house on Resale flat(or it can be claimed only on New Flat),
    2. If yes, how I can claim complete benefit on both the flats.

    Please suggest.
    Thank you.

  34. Chaitanya says:

    Dear sir, I have 1 flat in Pune ( showing self occupaid ) and claiming IT benefit for Principle as well as Intrest.
    I am working in Navi Mumbai and now in process of purchase of resale flat in Navi Mumbai, My wife is first owner & I am co owner, We will be staying in Flat at Navi Mumbai. Wife is non tax payer. Following are the queries.

    Can I get benefit on Resale flat or it has to be New flat only?
    If yes for above, then how I can claim complete benefit on both the flats?

    Please suggest.

  35. spatil says:

    1. I have taken one home loan and house is located in native place far from bombay, so i have declared as selfoccupied
    2. i am planing to take another home loan (flat) which is in bombay, i want to stay in flat, can it be declared as letout property

  36. Pranav Kumar says:

    I am a salried emloyee of PSU .I have purchased one flat in the year 2006 ( I am the registered owner of the house ) and claiming IT deduction on interest on loan .

    I have purchased a flat in April 2015 . Registered owner of the house is my wife . I have Taken Housing loan . My wife ( House wife with no source of income )is borrower and I am co-borrower . The Loan is sanctioned on my income criteria and I will pay all EMI .

    Am I eligible for IT deduction on Interest to be paid on Flat purchased recently ( i.e in April 2015 )

    Regards
    Pranav Kumar

  37. Arun says:

    What if i have a own house, due to distance from office i am staying in a rented home. Can i clam HRA, Intrest & Loan amt paid.

  38. mahesh says:

    I have 1 property fully owned by me AND ANOTHER jointly by me and my wife.
    both the houses are self occupied by us.

    Can I claim 1 house as self occupied and another joint property as self occupied
    by my wife? is it correct ?

  39. vinod Kumar says:

    i am purchased second home by housing loan. first home is not by housing loan. so can i get housing loan exemption?

  40. Anuj Malhan says:

    Nice article

  41. Amar says:

    Sir, Under which section of IT Act, interest repayment to the second house (rented or let-out) is deductible? Is it without upper limit of 2 lakhs?
    Thanks

  42. Lakshman says:

    Dear sir,
    We have 1BHK flat in Hyd ( showing self occupaid ) and i am working bangalore can i plan to purchase one 2bhk flat in bangalore.
    house loan interest i am claiming on Hyd Flat and House rent showing in Bangalore for self. please suggest me whether can go ahead with both House loans how can i claim both house loan interest. both house loans together interest will be Rs. 2.0 lacs limit or indivsual loan.
    pl clear me doubt, thank you

  43. Jacob says:

    Hi,

    Can an interest component of repayment towards a property under construction also be considered as DLOP and accounted for deduction of interest for tax calculations ?

  44. SOMIT BOSE says:

    I had opted for a home loan in 2010 towards a house property in Vapi and the same was finally disbursed/ cleared up during July 2014. Again in November 2014, i have availed another home loan for another house at Vapi only. Can I get the tax benefit of both these property. Please suggest.

  45. kishen says:

    Dear Sir,
    My sister got a share in a redeveloped property of her late husband,where 6 flats were built.
    Since this financial year the society has started charging maintenance expenses of 60,000 per year.
    The house is vacant.Since there is no income,can we claim the society maintenace charges as carry forward expenses to be set off after a tenant comes or is there any other treatment.
    Regards
    Kishen (brother)

  46. NISHIGANDH says:

    hi,I already have two home loans and I am purchasing third property then my questions are
    1. Can I claim interest portion of third property for deduction?
    2. Is the bank issue interest certificates for claiming the deduction?
    3. Is the interest rates are same for fist, second and third property?
    Please help me.

  47. ashwin says:

    I have sold one property on my name recently,can I repay the home loan on my second home on my wife name(sole owner,salaried) purchased recently 6months ago .can I claim capital gain tax benefit by doing so?

  48. Mandar says:

    Tax exemption is available for second home loan i.e. home loan availed for second home. Or it is like two home loans are required to be in force simultaneously.

  49. Vandana says:

    Dear Sir,

    I invested in 2 flats, I want to sell one of my flats and use the return towards payment of my instalment for the 2nd flat.

    Will my gains attract short term/long term tax on it.

    Thanks

  50. Ajit says:

    Sir,
    Thanks for providing good information. I have little different query. I am currently residing in house which was given to me by my father-in-law by way of Will. I am planning to buy a small 2nd home with my own funds (without loan) I don’t have any other home either in my name or in the name of my spouse.
    Whether the 2nd home will still be considered as ‘Deemed let out’ for the purpose of Income tax act
    Thanks and regards
    Ajit

  51. L S M SALINS says:

    I have two flats under rent and am currently staying in a rented premises while constructing a house in rural area because of capital gains from a previous property sold. Can I get benefit of rent paid on rented property? Do I have to pay wealth tax?

  52. Jacob Thomas says:

    In case of purchase of second home under the foll conditions, how is IT to be filed:
    a) Same city of first home
    b) Second home is under construction & therefore cannot be let out till the next 36 months
    c) Second home is taken in the name of wife who is not employed
    d) First home balance loan – is it better to prepay and close or to continue?

    While i understand from your article that the entire interest amount of the second home can be claimed under tax exemption, my query is more in the perspective of the first loan remaining in force, the rentals whether applicable i case of under construction 2nd home and the choice of city of 2nd home.

  53. vikas says:

    I have purchased second house jointly with my wife .can I take advantage of 50 % interest and for my wife this as Self occupied and she takes benifit of 50% principle and intrest both.

  54. mahesh maisuria says:

    Can i help my son with my retired fund to help to purchase property for him.this is his first proprty. I hv my own named property. Can i do so?

  55. jagdish hire says:

    R/sir, I have current planning to purchase onother property.it is a row house costing 33,70,000( goverment value). it is under construction now. it will be completed in next yr in Feb. currently I am working in PSU having annual income 4,90,000.I am currently living in my own purchase flat since 2011. I have cleared loan of hosing of this flat of 5,00,000 last year in august.plz guide me about tax regarding purchasing of new property as well as future taxes to be paid for this property.

  56. Ravi says:

    Sir,
    I have two housing loans. One loan i have claimed as self occupied. Second housing loan is borrowed jointly & the house is jointly owned by me & my wife. we want to share the second housing loan as 50% & 50%.Can I show the second housing loan interest (50%) towards let out property (NOTIONAL RENT 50%) & my wife can claim the second housing loan principal amount (50%) & Interest amount .
    Pl. reply whether it is permitted.
    Also since my wife self occupies the second flat, will it fall under perview of wealth tax.

  57. Dharmendra says:

    Sir,
    I have two housing loans. One loan i have claimed as self occupied. Second housing loan is borrowed jointly & the house is jointly owned by me & my wife. we want to share the second housing loan as 75% & 25%.Can I show the second housing loan interest (75%) towards let out property & my wife can claim the second housing loan principal amount (25%) & Interest amount (25%) as her self occupied house. Pl. reply whether it is permitted.For me it is a second loan and for my wife it is first loan.

  58. Mumbaikar says:

    I have a flat and it is rented out. Maintenance charges to society is paid every month by the tenant by deducting from the rent and remaining amount I am receiving as rent. Can I deduct 30% from the rent as maintenance expenditure for calculating the taxable income from house property, as the society takes care of only common facilities like security, supply of water, common area lighting, lift maintenance, road maintenance etc.. Inside the flat society do not maintain / take care. Pl let me know am I eligible for 30% deduction.

  59. Dikshay says:

    I am having two properties out of which one is located in a very remote area and would not even fetch Rs 100 as rent; in short it is in dilapated condition. So is there any case law to prove that DLOP would not apply..?
    Please Help
    its Urgent..!

  60. Surendra says:

    I’m a central govt employee. I’ve purchased 2nd house.

    I need few clarifications regarding income tax computation.
    1. As I understand, I need to declare 2nd House as LET OUT as first one is self occupied. So, when I declare it as LET OUT, I’ll have to show notional rental value, though it is empty. It is 46 sq.m. and is in Mansarovar, Jaipur.
    I want to know how do I compute this notional rental value.

    2. Wealth tax is also levied for 2nd house. Where should I show it in ITR2?

    May I request your kind response.

  61. bharati says:

    Sir,
    I have two housing loans. One loan i have claimed as self occupied. Second housing loan is borrowed jointly & the house is jointly owned by me & my husband. we want to share the second housing loan as 70% & 30%.Can I show the second housing loan interest (70%) towards let out property & my husband can claim the second housing loan principal amount (30%) & Interest amount (30%) as his self occupied house. Pl. reply whether it is permitted.

  62. durga prasad says:

    can i declare my single flat as self occupied even if it is lying vacant.
    please help

  63. prashant says:

    Dear Sir,

    Please help me to understand that tax benifit for below scenario.

    I had brought 1st flat in Nov 2009 as a single Owner. Home loan for this flat is completed recently and waiting for the documents from Bank.

    Now I want to purchase another flat on My wifes name and I will be a Co applicant for that. We both will contribute EMI ( 40% by Wife & 60 % by me)

    Please guide us for the Incometax benifit for both of on below points.

    1) I Want to know, is I am elligible to avail the tax benifit ( on 2nd homeloan with Co applicant) as I have already avail it during my 1st flat purchase.

    2) Same to my wife as its her fist home loan with main applicant.

  64. prashant s says:

    Dear Sir,

    Please help me to understand that tax benifit for below scenario.

    I had brought 1st flat in Nov 2009 as a single Owner. Home loan for this flat is completed recently and waiting for the documents from Bank.

    Now I want to purchase another flat on My wifes name and I will be a Co applicant for that. We both will contribute EMI ( 40% by Wife & 60 % by me)

    Please guide us for the Incometax benifit for both of on below points.

    1) I Want to know, is I am elligible to avail the tax benifit ( on 2nd homeloan with Co applicant) as I have already avail it during my 1st flat purchase.

    2) Same to my wife as its her fist home loan with main applicant.

  65. JOHN VARKEY says:

    I HAVE PURCHASED A SECOND FLAT IN PUNE.I HAD TAKEN LOAN OF RS 27 LAKHS IN APRIL 2012 AND I AM PAYING EMI OF RS 30,000 PER MONTH.I ALREADY OWN ONE HOUSE IN NAGPUR.AS ON DATE THERE IS NO LOAN ON THE FIRST HOUSE AND IT IS SELF OCCUPIED. I HAVE TAKEN OVER THE FLAT FROM THE BUILDER IN MARCH 2014.KINDLY ADVICE ME HOW TO FILE THIS IN THE INCOME TAX RETURN FOR CLAIMING TAX EXEMPTIONS AS PER RULE

  66. Rajesh says:

    My wife is sole owner of an apartment bought by her in 1998. No loan. Own savings. Having rental income from the same. In 2009 she along with her mother purchased another apartment sharing equal amount. Mothers share was down payment and wifes share was in form of home loan, though the loan docs are in both name being joint property. Now my problem is what are the tax rebates permissible and what is tax implications of having two houses in her name?

  67. Prashant S says:

    Dear Sir,
    Please help me to understand that tax benefit for below scenario.
    I had brought 1st flat in Nov 2009 as a single Owner. Home loan for this flat is completed recently and waiting for the documents from Bank.
    Now I want to purchase another flat on My wife’s name and I will be a Co applicant for that. We both will contribute EMI (40% by Wife & 60 % by me)
    Please guide us for the Income tax benefit for both of on below points.
    1) I Want to know, is I am eligible to avail the tax benefit ( on 2nd home loan with Co applicant) as I have already avail it during my 1st flat purchase.
    2) Same to my wife as its her fist home loan with main applicant.

  68. Prashant S says:

    Dear Sir,

    Please help me to understand that tax benifit for below scenario.

    I had brought 1st flat in Nov 2009 as a single Owner. Home loan for this flat is completed recently and waiting for the documents from Bank.

    Now I want to purchase another flat on My wifes name and I will be a Co applicant for that. We both will contribute EMI ( 40% by Wife & 60 % by me)

    Please guide us for the Incometax benifit for both of on below points.

    1) I Want to know, is I am elligible to avail the tax benifit ( on 2nd homeloan with Co applicant) as I have already avail it during my 1st flat purchase.

    2) Same to my wife as its her fist home loan with main applicant.

  69. Radhakrishnan says:

    I own two flats. First one acquired in 1999 and second one in 2007. I now intend to sell both these flats and swap the consideration into another flat. What will be the tax implication? Will I get the benefit of indexation for both flats? If i use the entire consideration towards purchase of a flat will i have to pay any tax on the sale of flat?

  70. snehal pathak says:

    sir,
    Q.1 :- If i buy a house sale deed registration fees paid in to registrar office rs. 35,000/- can i claim income tax deduction under 80-c

    Q.2 :- If i can taken a loan for my house renovation / repair can i claim repayment of loan principal u/s 80-c & interest u/s 24 income tax deducation

    pls reply for the same

    thanking you

    snehal pathak

  71. Manisha says:

    I am from Ahmedabad and I bought my first house in Ahmedabad in 2007. I had taken a loan and completed my loan in 2010. In 2012, I shifted to Mumbai and now I am planning to buy one more flat in Ahmedabad. so if I take home loan on second house (12 Lac), how much tax benefit I could have? Please explain.

    I am living on rent in Mumbai.

    Thank,
    Manisha

  72. Malay Kanti Saha says:

    Dear Sir,

    Can you please clarify the following.

    1) I had bought a flat with home loan from bank and now repaid the loan in full and released the mortgage.
    2) Now I would like to buy another flat which has just launched and will take 3-4 years to construct. I would like to take home loan jointly with my wife. I will make 80% payment of EMI and Wife will make 20% payment of EMI. Please let us know what income tax benefit we will get for interest repayment on this 2nd flat.

    Regards.

    M.K.Saha

  73. Kalpesh Gosar says:

    Hi Pradeep

    Tax is applicable even if one is unable to find a tenant in a given year.

    Hard Luck Man!!!!

    Regards
    Kalpesh Gosar

  74. Naga Sai Raja says:

    If a person having two house properties among which one is given by the government under subsidy for a nominal amount and has sold the same property from which he gained a capital gain of say 11 lakhs then what would be the tax implications

  75. Sanjeev Kr. Agarwal says:

    I have my own house and leaving in it. Can I get the deduction of repair & Maint. @ 30% under house property income. If can take, at what value it will be calculate.

  76. balu says:

    dear sir,

    if i taken first housing loan and paying EMIs and taken loan for second house before closing the first loan.

    how to claim interest & repayment paid for both loans

    thanks

  77. vali says:

    Dear Mr.Giridhar,

    under Sec54 of IT act, you can acquire a new residential flat with in year before or 2 years after the transfer date and you too have second option to construct a new residentail property with in 3 years of the sale of existing flat to avoid capital gains

  78. GIRIDHAR says:

    I am having self occupied flat in chennai right now. I am planning to shift my area and buy one more flat by way of selling my first flat. My question is if I sell my flat and use this money to repay second flat, will I payable for capital gain? I will appreciate if someone can share inputs on this situation – whether capital gain can be avoided if first flat is sell after 1-2 yrs of purchase of second one? Thanks in advance

    GIRIDHAR

    • harshit says:

      mr. girdhar if you purchase a second flat before seeling yhe first house propert you should sale the first house property before the completion of 1 year of purchase to avoid capital gain

  79. Ravi Agrawal says:

    I am having one house right now. I am planning to buy second home without selling my first home. My question is if I buy second home and in near future, say 1 yr, I sell first home and use this money to repay second home, will I be able to avoid capital gain? As the sequence in my question is reverse to easy available rule on capital gain, I will appreciate if someone can share inputs on this situation – whether capital gain can be avoided if first home is sold after 1-2 yrs of purchase of second home? Thanks in advance

  80. M.R.Sahdev says:

    From  M.R.Sahdev
    Dear Taxguru,
    I have written a comment to you on 9th August but I have not received any reply sofar. 
    I shall be very grateful if you kindly send your valuable advice urgently.   Regards
    M.R.Sahdev

  81. M.R.Sahdev says:

    I shall be grateful if you kindly clarify the following points.
    My son,employed at Bangalore ,has a house at Bangalore.2 years back, he was tranferred to Gurgaon where he took a rented house.Now after 2 years ,he has purchased a house of his own at Gurgaon and recently shifted to this house, .
    For his first house at Bangalore,the loan amount has come to an end. The house has been let out for the last about 2 years.He has paid income tax on the ‘income from House property’ during these 2 years.
    For the second  house at Gurgaon, he has taken a bank  loan for which he has been paying  EMIs  since July 2011. 
    Now if he declares the Bangalore house as’ self occupied’, kindly advise the tax treatment from the second house at Gurgaon which he is now actually occupying.Can this second house be treated as ‘self leased’ house?.Is there any benefit out of ‘self leased’ under the provisions of law? Please throw some light on this aspect also.
    In case you need any other information from me, I shall be too pleased to furnish the same.
    I shall be highly obliged for your early response on my e mail.
    Thanks and regards.

  82. Sandeep says:

    I have cleared the housing loan of my self occupied property and have purchased a second house in Dec’ 10. I have availed a loan and the EMI has already started. I’ll be getting the possesion somewhere in May 2012.Let me know if i can claim the stamp duty and registration charges along with the principal and interest paid on the second house property?

  83. Ranjit Sinha says:

    Iam having one house property at Patna acquired through staff loan of my organisation.and presently let out as my posting is at present at Delhi. and i am residing in my company’s flat

    I have availed a second housing loan during FY 2010-11 to acquire another house at Noida, Poseession of which is likely to be in july 2013. Deduction of loan installment ahs already been started with release of Ist installment.

    My query : Whether Interest accrued on second housing loan will qualify for tax benefit for FY 2010-11 ? If yes, what will be ceiling?

  84. Nitin says:

    Hi,
    I have 2 Flats , both are taken on Loan. If i rent one house & Stay in the other house then please suggest what all i can avail under HRA deduction & Interest Deduction ..Can i have the Interest paid for both he houses deducted from my Taxable Income..

    I believe i am supposed to show the rent from the Property rented out as Income while doing Tax Calculation.

    Regds/Nitin

  85. Viji says:

    Yes. Since itsa deeming provision the highest of the three, 1.actual rent received , 2.Assessable value as per Corporation assessment value for tax levy , 3. Fair rent( market rent receivable if let out) will have to be offered to tax.

  86. Pradeep says:

    If one chooses not to let out the second house or if one is unable to find a tenant in a given year, is he still liable to pay tax on the ‘notional’ rent for the second house ?

    Thanks,

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