Second house to reduce tax
When any taxpayer come under the highest tax bracket and have to pay 30% tax on the income, one can reduce his tax liability if he avails of the deduction on home loans, especially in case of the second house.
In case of a home loan taken for a self-occupied property, the principal amount repaid up to Rs 1 lakh qualifies for deduction under Section 80C, while up to Rs 1.5 lakh of interest paid is tax deductible under Section 24.
in case of a home loan for the second property, only interest payment is eligible for deduction. No tax benefit is available on the principal repayment on the second loan.
But the most attractive part is that there is no limit on the deduction for interest payment on the second loan.
Hence the entire interest paid for the second home loan will fall under tax exemption amount.
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Punjab & Sind Bank reduced home loan rates
Source : Economic times
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