Friday, February 8, 2019

A Short Note On Home Loan And Tax Benefits If You Own Multiple Homes




The law allows a person to buy multiple homes and he can vail home loan to finance the purchases. There is no restriction or limitation that one can own. Here is a short note on the home loan tax benefits if you own multiple houses.

Even though there is no restriction on the number of housing properties for which one can take a home loan and claim tax benefits, the total home loan amount depends on various factors such as the applicant’s earnings, credit score,the age of the applicant etc.

    Tax benefit on interest
The home loan applicant can claim a deduction on the interest payable on the home loan which is taken for construction, purchase or renovation of a property. It is applicable to a commercial property too under section 24(b).

    Tax benefit on principal
The tax benefit on the repayment of the principal amount is applicable only after you have taken possession of the property. This tax benefit is not available for one who has started repaying the principal before taking possession of the property.

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