I purchased a flat in Bangalore and also planning to get a flat in chennai. My parents stay in chennai only. So, i'm plaaning to rent the chennai flat and the bangalore house to be self-occupied. Both will be in housing loan. What is the best possible way to reduce tax payable. Any suggestions? I'm not very sure / clear about the interest deductable with second house?
RE:need clarity
by Amitabh on Jun 06, 2007 02:51 PM Permalink
If your Chennai flat is on rent and Bangalore flat is treated as self occupied you will get interest deduction on Chennai house for the amount of interest accruing for the year without any limit and for bangalore house upto Rs 1,50,000.
RE:need clarity
by Amitabh on Jun 07, 2007 03:16 PM Permalink
Deduction of principal is allowed under Sec 80C within the overall limit of Rs 1 lac only alongwith the deduction of all other eligible investments like PPF,life insurance,equity linked saving scheme,tutuion fees for children,NSC,etc.
