In short I will tell you what are the tax benefits on loan taken for 1st(as self-occupied) & 2nd House. Let’s see
→ Any buyer who avails a home loan is eligible for tax exemption on the principal repayment Under Section 80C of the Income Tax Act, subject to a maximum limit of
Rs. 1,00,000 p.a. Rs. 1,50,000 p.a under the said section.
→ Similarly, the amount paid towards interest element is exempted Under Section 24b from the taxable income to the limit of
Rs. 1,50,000 p.a. Rs. 2,00,000
→ In any case, if you have put your only house property on rent and you are staying in rented accommodation or any other house property (due to job location or other reasons) then you can take the benefits of let-outs property.
→ Remember, there is no tax deductions can be claimed on principal repayment if loan taken for let-out property or property not being self-occupied (treated as deemed let-out).
→ But, best part is
you can claim the entire interest (paid for 2nd house) that has been paid for the financial year. That means, there is no upper limit for the interest paid in a year. Read – Budget 2017-18 restricts tax benefit on second house to Rs 2 Lacs.