cpc

interest on home loan under 24 b


HI
I have bought 2nd home.
I Understand that the second home loan's interest part can be claimed for exemption for income tax deduction.

I checked with my employer, they say its possible but it cannot be done at TDS level.

It means they will deduct tax and  I need to do it seperately when I file return.
Please advise if this is right.
If now what reference I need to give them so that I incorporate the exemption at the TDS level so that I need not to claim it later.

 
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ADVOCATE

FACTS Given: I have bought 2nd home.I Understand that the second home loan's interest part can be claimed for exemption for income tax deduction.

I checked with my employer, they say its possible but it cannot be done at TDS level.

It means they will deduct tax and  I need to do it seperately when I file return.
QUERY:Please advise if this is right.

The loss (which includes interest expenditure) from Let Out property is to be computed and to be considered while filing the return of income.

Interest expenditure relating to the let out property cannot be considered by the employer.

This is as per the Income Tax Department's view expressed in the Circular on TDS from Salaries, it releases every year.

The employer's view is correct.

 
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Advocate

Agreed with Sh. R Rajgopalan. Please go through Income Tax Circular on TDS from salary i.e.  , F.NO. 275/192/2012-IT(B),

 
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Dear Sir,

I am not sure if I have asked to question rightly. Let me explain as below.
I have two home loans going on.
for the first home loan, my employer has made provision for tax exemption in 80C (Principle) and 24 B (interest on the loan)
for the second home loan they say that interest on the loan is eligible for tax exemption (under 24B) but it cannot be incorporated at TDS level.

Question - Are they right ?

So if they are right,
then how I need to show  the interest I paid while filing return.

 
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Advocate

For second house the rental value is to be calculated whether the house was given on rent or not. Total rent received / receivale less eligible expances will be deducted from interest paid on loan to second house and the interest deduction  u/s 24  IT Act would be calculated.

 
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ADVOCATE

In the income tax return, you have to show and compute the income from each house separately.

There you can show the income from the 1st house, and the second house, and claim the deductions admissiblein respect of the particular house. 

 
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