A home loan for investing in a second home can be quite tax-efficient. Section 80C, Section 24B comes under the Income Tax Act that deals tax gains under an asset. Under section 80C and 24B, one can avail tax benefit up to 1.5 Lacs on the principal amount and 2 Lacs on interest, respectively. This means either you pay the tax or the loan amount, meaning dispense of money inevitable. This discharge of money can be utilized for an investment.
