I already have a house which was purchased on home loan. Now that home loan is at the verge of completion and i want to buy another house on another home loan in my name. Can i apply for tax benefits at this home loan also?
Do remember that this second property is considered as let out property (even if it is vacant). If it is vacant also, then a notional rent is considered as your income and taxed accordingly. However, you can claim a 30% deduction for all the maintenance and repair charges.
For second home loan principal payment is not eligible for deduction under section 80 C.
Interest paid towards loan can be claimed up to Rs.2 lakh as a tax deduction. Anything more than that can be considered as a loss from house property income and can be carry forwarded up to 8 years (to the yearly maximum limit of Rs.2 lakh for each financial year).