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If I take a second home loan, can I get tax benefit on both loans?

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If I take a second home loan, can I get tax benefit on both loans?
OLM Desk - 04 October 2017

If I already have one home loan and take a second home loan, can I get tax benefit on both loans?

Gajendra Chauhan, Jaipur

Yes, you can get tax deduction benefits on more than one home loan taken in one financial year to buy a property. However, you will have to pay tax on the ‘notional rent’ on at least one of the houses. Notional rent is the rent you would have got had you given the house out on rent. As an owner of two houses, you can choose one house to be the ‘self-occupied property’ and the other will be taxed on the basis of its notional rent. There is no limit for deduction of interest payable on the loan taken to acquire the property, which is treated as ‘notionally on rent’. You can also change your choice from year to year.

olmdesk@outlookindia.com

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