TAX BENEFITS ON SECOND HOME LOAN

1. TAX BENEFITS ON SECOND HOME LOAN Interest Deduction You can claim a deduction on the interest paid on the second home loan under Section 24(b) of the Income Tax Act. The maximum deduction allowed is up to Rs. 2 lakh per year. Rental Income If you rent out your second home, you can avail of tax benefits on the rental income. The rental income is taxable, but you can deduct expenses such as property taxes, maintenance charges, and home loan interest from the rental income. Capital Gains If you sell your second home, any capital gains arising from the sale will be taxable. However, you can claim exemptions under Section 54 if you invest the capital gains in another residential property within a specified period. Principal Repayment The principal repayment of the second home loan is eligible for a deduction under Section 80C of the Income Tax Act. The maximum deduction allowed is up to Rs. 1.5 lakh per year Loan for Renovation If you take a home loan for renovation or repair of your second home, the interest paid on that loan is also eligible for deduction under Section 24(b) of the Income Tax Act. https://www.pnbhousing.com/blog/tax-benefits- on-second-home-loan/