Home Loan Tax Benefits: What are the income tax benefits if I took out two mortgages for two separate properties?



I have an existing home loan for real estate in Mumbai, where my wife and I are co-borrowers. In 2016 I took out a loan of Rs 1 crore, of which 30 lakhs remain unpaid. Now I need to move from Mumbai. I am planning to buy a new house in the city I am moving to and I need a mortgage. If we buy this new place (jointly owned by me and my wife), how will income increase? tax benefit to exercise?

Amit Maheshwari, Partner at AKM Global, answers: If you intend to claim that both properties are independent, take advantage of interest the deduction is limited to Rs 2 lakh each for co-owners per year. This limit should be the cumulative limit for all private households. However, in the case of rentals, there is no upper limit on the interest requirement. However, losses that may arise from such interest can be offset against other income in the amount of only 2 lakhs, and the remainder is carried forward. You can also claim withholding the principal portion of the loan or stamp duty paid during the year below Section 80C up to 1.5 lakhs for each co-owner. Tax breaks for joint ownership are available to all co-owners in accordance with the share of ownership.

If my son gives my wife 4 million rupees, does she have to pay any tax on it? If she invests this money in a bank FD, will the resulting interest be added to my son’s taxable income?

Shubham Agrawal, Senior Tax Adviser, TaxFile.in replies: Income Tax Law contains a list of relatives from whom you can receive gifts without any taxes. The son is included in this list. Therefore, no tax will be charged on this transaction. Gifts to parents are not covered by club regulations. Consequently, interest earned on this amount will be taxed in your wife’s name.


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