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I need some advice on availing IT benefit on housing loan. I have taken a housing loan for first property for which I have availed tax exemption on housing loan to include principal & interest component. At present I am staying in the first property.
Now i have plaaned to purchase a second house through a housing loan. After possession of the house I intend staying in the second house. Can I treat the second house as let out & the first one as the self occupied & claim IT exemption on the interest component on the housing loan availed for the second house.
Only One property is considered as self occupied and rest all the properties is considered as let out. You can treat any one property as self occupied.