TAX SAVING

Querist : Anonymous (Querist) 07 December 2009 This query is : Resolved
I have already taken homeloan for construction of my house on my plot & availing tax benefit on home loan taken. As the total balance amount on home is about to complete & after paying full amount I will not be able to avail tax benefit .

Please tell me if I take additional home loan for the further construction on same the plot ( Ist floor ). Can I will be entitled for availing tax benefit on the same way as I am availing today.

Please advise.

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A V Vishal (Expert) 07 December 2009
Please tell me if I take additional home loan for the further construction on same the plot ( Ist floor ). Can I will be entitled for availing tax benefit on the same way as I am availing today?

Ans. Yes, you can take additional home loan for further construction of 1st floor and avail the tax benefit. However, there are certain pros & cons which need to be discussed in depth.

Raj Kumar Makkad (Expert) 07 December 2009
The benefit of exemption in income tax liability goes on till the loan amount is repaid fully so if raised again, the same exemption can again be availed without any hurdle.

adv. rajeev ( rajoo ) (Expert) 07 December 2009
I agree with both the learned members answers/

Vineet (Expert) 08 December 2009
Yes you can take further loan and claim deduction for interest paid. In fact interest paid on loan availed for any repairs, improvement on existing house is also eligible for deduction.