Generally, you can seek a first-time home loan for buying a house or a flat, renovation, extension, and repairs to your existing house. You can own more than one house and borrow home loans for that purpose. However, it depends directly on your income and your repayment capacity of paying off the debt simultaneously for both the loans. If you are an individual and do not have the business income you may opt for the old tax regime of the income tax act under which you can claim a tax deduction on repayment principal amount of the first housing loan under section 80C up to Rs.1.50 lakh. Although deductions under Section 80C on the principal amount of the loan may not be available in the case of your second house, you can enjoy tax benefits on the interest component as under.
1. The first home is self-occupied, and the second home is vacant: According to the latest provisions in the budget, the second home cannot be deemed let out. So both the houses will be considered self-occupied. Interest claimed on both houses cannot exceed Rs 2 lakh.
2. If the first home is self-occupied, while the second is on rent: You have to declare the rental income of the second property. From there you can deduct the standard deduction of 30 percent, interest on the loan (without any upper limit) and the municipal taxes paid.
The Reserve Bank of India has also directed that home loan borrowers can get funding up to 90% of the property value in case this value is less than or equal to Rs. 30 lakhs. For loans between Rs. 30-75 lakhs, the LTV (loan-to-value) ratio stands at 80% while it is 75% for loans above Rs.75 lakh.
Bank customers can now withdraw cash from ATMs without using physical cards. Even if you…
Economic systems can be classified as Traditional Economies, command economies, market economies, and mixed economies.…
The analysis of financial statements means identifying a business establishment's financial strengths and weaknesses by…
The Reserve Bank of India issued draft guidelines to provide a harmonised prudential framework for…
RBI has recently issued two notifications. The first notification is about Margin for Derivative Contracts…
Economists may define the subject of economics in several ways considering different aspects of the…