Tax Benefits on a Second Home Loan-Banner_WC
Know the Tax Benefits on a Second Home Loan_WC
Buying a second home makes for a sound investment choice, and with the help of a Home Loan, this move is made easier and tax effective. The Income Tax Act has special provisions in place to incentivize the purchase of a second residential property by allowing deductions on the second Home Loan.
To understand the tax benefits of a second Home Loan, read on.
Availing of a second Home Loan allows you tax benefits on the principal portion of your Home Loan repayment. You can claim a deduction of up to Rs.1.50 Lakh under section 80C of the Income Tax Act, 1961.
Additionally, in the case of a self-occupied property, if the construction is completed within five years of sanctioning the loan amount, the interest paid is eligible for a deduction of up to Rs.2 Lakh under Section 24(b) of the Income Tax Act.
To avail of tax benefits on a second Home Loan, ensure that both the first and second Home Loans are under your name. You can also submit your Home Loan interest certificate and sanction letter to your employer for TDS deductions.
Considering that the cost of real estate in India can be steep, tax exemptions on a second Home Loan make the purchase affordable. Tax savings can compound over the years; however, to truly enjoy a financially favourable experience, you should ensure that you opt for the right lender.
If you seek a second Home Loan, consider Bajaj Housing Finance as it offers a competitive interest rate and a flexible repayment tenor, basis eligibility. To borrow today, apply online and get your loan application approved quickly.
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Also Read: Tax Benefits on Joint Home Loan
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