Avail tax benefits from second property in India
In the present real estate market scenario the home buyers are younger than they were before. Most of the home buyers buy their dream home in their twenties.
Buying a second house in India is a new trend and has been recognized as a growing market in the past few years.
As an investment, real estate is considered illiquid. But the main advantage of buying a second home is the tax benefit the buyers get on a second home loan.
In India if the second house is rented out, the income from it will get two deductions: Property tax paid and interest payout. If the house is not rented out, the municipal rate of the area will be considered to be the rent. After the above deductions, the income will be taxed.
In case of a loss after the property tax and interest payout, the taxpayer can offset it against gains from only a housing property any time in the next eight years. Alternatively, the loss can be set off in the same year against any other gains in that year.
In terms of investments, investors must consider factors like location of the property, infrastructure and commercial activities like town planning, and the existence of ready consumers for the property.
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Affordable housing project launched by Vibgyor
Source: Business Standard
house in India, Properties in India, Property Market in India, property tax, Real estate in India, Real estate investment, Real-estate market, Tax benefit on investment
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