Many people don’t know this, but when you opt for second home loan, you get some amount of tax benefit on the home loan
Deductions under section 80 C: Under this section, you can avail a maximum deduction on the home loan of Rs 1.5 lakh. You also should know that the 80 C deduction also includes investments like life PPF, ELSS, etc.
Apart from this, there is also a deduction on second home loan interest. Under section 24, you can claim for a maximum deduction of Rs 2 lakh on interest payment if you own only one home. However, from Budget 2019, you it is considered that your second house as self-occupied. So even if it is vacant, it cannot be deemed let out. Let us consider second home loan tax benefits under two different conditions.
The first home is self-occupied, and the second home is vacant
In this case, you cannot let out the second house. So, both your houses need to be self occupied and the interest claim cannot exceed Rs. 2 L for both the houses.
The first home is self-occupied, while the second is on rent
In such a case, you need to declare the income from the rent of the second property. There will be a standard deduction of 30 percent, interest on the loan ( without any upper limit) and the municipal taxes paid. You can also claim up to Rs 2 lakh against other income sources.
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Authors Of The Question
What is tax benefit on second home loan ?
Gyan Prakash
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2020-09-10T17:26:41+00:00 2020-11-11T18:46:07+00:00Comment
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