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People often get very emotional about their home, but sometimes some such situation comes for us when we have to leave our house. There can be many reasons for changing the house, like some business or job, Or even having one house of our own, we can take another house as an investment or even give it on rent. We may have to leave our house and take it home somewhere else.

Why not change the house after seeing a good location when we have to change the place. So you can take your second home in a good area like Pandharpur. Home in Pandharpur will be great for you.

The pure atmosphere here, pure air and you will get mixed in nature.

Now it comes to the tax benefits you get in your second home. Whenever we buy a second house, we also get some tax benefits. Today in this blog, we will provide information about some tax benefits. 

The tax benefits of buying a second house?

There are many tax benefits for those who have two houses. But there will be no joy if you have completely paid off your home loans. So now let's look at the benefits in detail.

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Self-Occupying the Second House:

If we have more than one land to live in, as clearly determined in the provisions of the Income Tax Law, one of the two houses, according to your choice, will be considered independent, and the annual value is calculated as zero.

Other places will be viewed as a coincidence and speculative rent per the provisions, Which we also call 'income from the home property.

Using the second house as a holidays/ Retirement Retreat:

Because here, the occupied assets can only be disbursed for one residence, the annual lease is considered to be considered as a taxable value.

Researching tax implications from the empty property:

If you are the owner of more than one 'property occupied by yourself' (SOP), you can choose to treat one of the two as SOP.

The remaining house will be considered a Let-Out property (DLOP) as mentioned in the law. If one of your homes is DLOP, it is a rental property.

Therefore, the value of average rent will be added to taxable income. You can claim a 30 percent average rebate for general maintenance.

Reducing the purpose of maintenance, improvement, and renovation:

In addition, the amount is similar to 30% of the annual valuable housing value permitted. This is because a certain amount must be deducted for renovation, general maintenance, and other improvements. It is important to note that this 30% reduction is a percentage set rather than according to individual costs.

Therefore, it does not matter how much you have spent on it; you can only claim this 30%. You cannot do more than that.

Reducing urban taxes:

Taxes are disbursed to local authorities. However, most Municipal taxes are permitted as fiscal reduction, where the tax is obeyed. This is regardless of whether this tax is related to the current or previous year.

Reducing interest:

Whether your second property is described or permitted, the genuine interest dispersed in a home loan is allowed as a reduction. This is contradictory compared to the case of homes set alone, where the maximum stake on home loans is limited to INR 1.5 LAC per year (INR 2 LACS from AY 2015-2016), bound by certain conditions.

Leaving/ renting a second house:

If your second house is purchased for rent, the genuine rent you produce will be considered a taxable income, conditional on specific guidelines.

Some points to keep in mind before buying a second house.

(Source: Tirupati Construction)

1. Know the area and the reason for buying your second house to make sure why you want to buy, Whether you are taking it for tax benefits or you are taking it for investment purposes.

2. If you are planning to give the house for rent or to lease the property, then keep in mind that the surrounding area should be good for the renters. And ensure it meets tenants' needs. Make a little inquiry in the neighborhood for more information.

3. Estimate the amount of money that can be spent on this beforehand. If you are already paying the EMI of any of your home loans, then keep in mind whether you have enough money to pay the EMI of your second home.

4. The rules for the interest rate may also be different. For example, for second-time borrowers, some banks may keep the interest rate slightly higher for the second buyer. So make sure whether it is comfortable to take a second home with both these conditions or not.

Conclusion

In today's blog, we have told you about some tax benefits of buying a second home; if you are not sure what are the benefits of buying a second home. So with the help of TirupatiConstruction Promoters & Developers, you can be sure to know the tax benefits and get a second home.

If you are searching new home then our team can help you with the same.

Do Contact Us: +91 7020523505

Email Id: shardulnalbilwar@gmail.com

We hope that you have liked this blog of ours.