Income tax benefit for self occupied multi unit house

[pnekkanti]

I have a 40x60 plot in Nobel Residency main road(40 ft). I am evaluating the below two options for construction.

1. Multi unit residential house with one portion for self occupancy
2. Ground floor commercial and 1st and 2nd floors for self residential use (since this road is semi commercial, there may not be significant additional rental income for commercial property)

Would like to know if the ground floor is commercial, do we need to pay higher property tax for the entire building or only for the ground floor.

As you know we can avail 2 laks tax deduction for interest payment on self occupied property. For rental property, entire loan interest is eligible for tax deduction.

If I take a home loan and construct multi unit house for both self use and rental, can avail income tax benefit for entire interest component or can I split the interest cost between rental and self occupied based on prorate basis?

I am sure many of you would have constructed multi unit houses with one portion for self use. Please share you experience on income tax deduction eligibility.


Thanks,
Tirumala

[mka]

I also own a site there and have similar plans for the future. Could you please share your site number / phone number /email id so that I can discuss the same with you?

[pnekkanti]

MKA, Sent you the PM.