What will be the income tax benefit if I have taken two home loans for two seperate properties?
In case you intend to claim both properties as self-occupied, then benefit of interest deduction is restricted to Rs 2 lakh each for co-owners in a year. This limit shall be aggregate limit for all self-occupied properties. However, in case of let out property, there is no upper limit for claiming interest. However, losses which could arise on account of such interest can be set-off against other income to the extent of Rs 2 lakh only and the balance shall be carried forward. You can also claim deduction for the principal portion of the loan or the stamp duty paid in the year under Section 80C up to the maximum of Rs 1.5 lakh for each co-owner. Tax benefits in case of co-owned properties shall be available to all co-owners in the ratio of ownership.The Income Tax Act gives a list of relatives from whom you can receive gifts without any tax incidence. Son is included in that list. Therefore, there will be no tax on this transaction. Clubbing provisions do not apply to gifts given to parents. Therefore, the interest earned on this sum will be taxable in your wifes name.