Can I claim tax deduction on housing loan taken for two properties in the same financial year? If yes, what is the limit? Will the deduction apply if the loan is taken from different institutions?Yes, you can claim deduction for the repayment of principal component of the loan under Section 80C in respect of both the houses in the same financial year subject, however, to the overall limit of Rs 1 lakh.
This deduction is allowed even in case you take loan from two separate institutions. Repayment of interest component can be claimed under the head income from house property. For the self-occupied house, the limit is up to a maximum amount of Rs 1.50 lakh and for the rented house there is no limit, that is, actual amount of interest paid during the financial year can be claimed as a deduction from the rental income. For claiming these deductions you need to obtain certificates from the bank/ financial institutions from whom you have taken the home loan stating the amount of principal and interest component paid.
