Tax Benefit on Second Home
I have two homes. I am the only owner (as well as the only borrower of the home loan for this home) of the first home and it is self-occupied.
The second one is a let out property and it is co-owned as well as the home loan was co-borrowed (with my father). The rent from this property is received in my father’s account and he also shows this in his income tax return. He does not claim any tax benefit from the interest paid on this property. What is the maximum tax benefit I can avail in tax return under this scenario?
The Rent need to distributed between all the Co owners as per their ownership rights if mentioned else equal. The interest paid towards loan can be reduced from rental income subject to limitation of net negative not more than Rs 2 Lacs . Balance loss if any after 2 Lac can be carried forward to offset against future rental income.