With property rates crashing over the last few years, a lot of people have started investing in multiple homes. However, borrowing home loan services is still one of the easiest ways of paying for your new properties.
It gives you an opportunity to divide your expenses and make it more manageable to pay for your assets. But a lot of people have misconceptions about the facility of multiple home loans.
It has become one of the biggest reasons, why people don't think much about this financial service. It is more especially when it comes to managing their property expenses. One of the most significant questions related to this service is the number of times a person can take a home loan. The other is to do with home loan tax exemptions on multiple financing.
In this particular article, we have put together everything related to multiple home loans and tax exemptions. Hence, ensure to read on till the very end!
Can One Take Multiple Home Loans?
While one might think that they can only acquire a home loan once, it is far from being true. There is no limitation on the number of times you can apply for this financing service. However, the amount of every new home loan purely depends on your repaying capacity and monthly income.
For example, imagine you have already taken a home loan for which you are paying Rs.50,000 monthly. In this case, the next home loan will be calculated based on your leftover income. In other words, with an addition of each new home loan, the amount that you can actually acquire will keep getting less.
Besides, the number of credit services borrowed can also affect the overall house loan tax exemption percentage. So it is always recommended to carefully figure out your monthly income before applying for a second or third home loan.
Can You Enjoy Tax Exemption On Multiple Home Loans?
If you have been wondering whether you will be able to enjoy tax exemption on multiple home loans, then answer is “Yes.” Like every other financing facility, many loan tax exemption are also possible.
But like discussed earlier, the sum of the claimable deduction is dependent on the overall loan amount. It means if the principal plus interest of your loans are Rs.50,000 and Rs.30,000; then this is the exact amount that you can claim.
On the other hand, certain loan tax exemption schemes like the one for first-time buyers are not applicable in this case. You might still be able to enjoy tax benefits on joint name purchases.
What All You Can Claim In Multiple Home Loan Tax Exemption?
There are a lot of things that can be claimed as home loan tax exemption. The list can vary from borrower to borrower, depending on his situation. But there are still a few common deductions or claims that you can make while filing for your yearly taxes. To give you a better idea of these rebates, here is a list that we have created:
● According to Section 80C of the Income Tax Act, you can claim a rebate on the principal amount paid on multiple home loans throughout the year.
● According to Section 24, you can claim exemption on interest paid on multiple home loans as well.
● Both borrowers can even utilize double house loan tax exemption schemes when they purchase property are on joint names.
It gives you an opportunity to divide your expenses and make it more manageable to pay for your assets. But a lot of people have misconceptions about the facility of multiple home loans.
It has become one of the biggest reasons, why people don't think much about this financial service. It is more especially when it comes to managing their property expenses. One of the most significant questions related to this service is the number of times a person can take a home loan. The other is to do with home loan tax exemptions on multiple financing.
In this particular article, we have put together everything related to multiple home loans and tax exemptions. Hence, ensure to read on till the very end!
Can One Take Multiple Home Loans?
While one might think that they can only acquire a home loan once, it is far from being true. There is no limitation on the number of times you can apply for this financing service. However, the amount of every new home loan purely depends on your repaying capacity and monthly income.
For example, imagine you have already taken a home loan for which you are paying Rs.50,000 monthly. In this case, the next home loan will be calculated based on your leftover income. In other words, with an addition of each new home loan, the amount that you can actually acquire will keep getting less.
Besides, the number of credit services borrowed can also affect the overall house loan tax exemption percentage. So it is always recommended to carefully figure out your monthly income before applying for a second or third home loan.
Can You Enjoy Tax Exemption On Multiple Home Loans?
If you have been wondering whether you will be able to enjoy tax exemption on multiple home loans, then answer is “Yes.” Like every other financing facility, many loan tax exemption are also possible.
But like discussed earlier, the sum of the claimable deduction is dependent on the overall loan amount. It means if the principal plus interest of your loans are Rs.50,000 and Rs.30,000; then this is the exact amount that you can claim.
On the other hand, certain loan tax exemption schemes like the one for first-time buyers are not applicable in this case. You might still be able to enjoy tax benefits on joint name purchases.
What All You Can Claim In Multiple Home Loan Tax Exemption?
There are a lot of things that can be claimed as home loan tax exemption. The list can vary from borrower to borrower, depending on his situation. But there are still a few common deductions or claims that you can make while filing for your yearly taxes. To give you a better idea of these rebates, here is a list that we have created:
● According to Section 80C of the Income Tax Act, you can claim a rebate on the principal amount paid on multiple home loans throughout the year.
● According to Section 24, you can claim exemption on interest paid on multiple home loans as well.
● Both borrowers can even utilize double house loan tax exemption schemes when they purchase property are on joint names.
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