Income tax: Home loan benefits when two houses are self-occupied

I have two houses. Both the houses have been taken on loan. I live in the first house and my parents live in the second house. Can I avail tax benefits for both the properties? Can I also avail tax benefits for stamp duty and registration fees paid for a second property purchased in March 2024? I have already availed the stamp duty and registration benefits of first house.

There is no restriction on the number of houses a person can own under the provisions of the Income Tax Act. Similarly, there is no restriction on the number of houses a person can avail of tax benefits on home loan. A person can have a maximum of two self-owned properties as self-occupied. So you can show both the houses as self-occupied.

Whether one owns one house or two houses, he can claim interest under Section 24(B) only up to ₹2 lakh in aggregate for both the houses. One can avail repayment of principal amount up to ₹1.50 lakh for any number of houses, whether self-occupied or rented out, along with other eligible items under Section 80C.

With regard to claiming stamp duty and registration fees for the second house, there is no restriction on the number of houses for which you can claim this deduction under Section 80C, as long as you fulfill the relevant conditions. . Since you have already taken possession of the second house and since it is a residential house, you can claim deduction in stamp duty and registration fees for the assessment year 2024-2025 corresponding to the financial year 2023-2024. Please note that it does not matter if you claimed the same deduction for another property in another year.

Please note that deduction under Section 80C and 24(B) is not available for self-occupied house properties under the new tax regime.