Deduction For Principal Repayment On Home Loan Capped At Rs 1.50 Lakh For Multiple Home Loans

Income tax laws do not differentiate between the first home loan and subsequent home loans. The deduction for repayment of the principal amount is capped at Rs 1.50 lakh for all home loans taken together. It is also available only under the old tax regime.

Likewise, the tax benefit on interest repayment is available for maximum two self-occupied properties only up to Rs 2 lakh for both the houses taken together under the old tax regime. No deduction for interest is available for self-occupied house property under the new tax regime.

As far as let-out property is concerned, the full deduction for interest payment is available under the old tax regime, but loss under the house property head is allowed for set-off against other income during the year up to Rs 2 lakh in the same year, and the loss not so adjusted is allowed for carry forward for eight years for set-off against house property income. Under the new tax regime, interest is allowed only to the extent of taxable rent, as loss under the head of house property is neither allowed to be set-off against other income, nor allowed to be carried forward.

The benefit of a flat rate of tax at 20 per cent on short-term capital gains (STCG) is applicable only for listed equity shares and units of equity-oriented schemes of mutual funds on which securities transaction tax (STT) has been paid. For all other assets, such short-term gains are treated like regular income and taxed at the slab rates applicable to your total income.

So you will have to pay the tax at the rate applicable to your income slab. As the property has been sold before completion of 24 month, you do not have the option to pay lower of 20 per cent on indexed profits and 12.50 per cent of unindexed capital gains which is available only on long-term capital gains (LTCG) arising on sale of land and building.

A senior citizen does not have to pay any advance tax in case he does not have any income under the head “income from business or profession”. So you do not have to pay advance tax in March for the current financial year if you do not have any such income. However, do ensure to file your income tax return (ITR) by July 31, 2026 and pay the tax at the same time. In case you fail to file your ITR by the due date, you will have to pay interest on the tax payable.