1) you can purchase second flat in joint names . make your wife co owner of flat if you so desire

2)If an individual owns more than one house property for his use, then under the provisions of the Income Tax Act, 1961 (the ‘Act’), any one property as per his choice is treated as self-occupied and its annual value is computed to be nil. The other house property is deemed to be let-out and a notional rent as per the provisions of the Act is computed as the taxable income under the head ‘Income from House Property’. In other words, the second house is treated as being rented-out and its estimated rental income is treated as taxable income.

3)In respect of such deemed let out house property, one can claim interest as deduction u/s 24(b) without any monetary limit. However, for the second house property, no deduction is available for repayment towards the principal portion of housing loan under section 80C.

1. You are eligible for I.Tax rebate on the interest to be paid against the loan you will take for buying the flat,

2. There will be no additional I.Tax liability for buying 2nd flat,

3. You can purchase the flat in your wife's name but in that case, the interest on the loan will be deducted as rebate from the income of your wife, if she is a I.Tax payee,

4. You are not going to pay additional I.Tax for buying 2nd flat. You shall have to pay additional I.Tax for the additional income you propose to earn by giving the flat on rent. If your wife is not a I.Tax payee, then the said rental income can be shown as your wife's income to save payment of additional income tax,

5. However, for advising on I.Tax benifit, both of yours income details are required.

Under the Wealth tax Act, 1957, Section 5(1) indicates that an assessee can hold one property as a self occupied property and the same be exempt from eligible assets liable to Wealth tax.

b) If an assessee, holds more than one property, then the second property for the purpose of Wealth tax has to be valued as per the Wealth Tax Rules 1958 and the value in excess of Rs. 30,00,000/- is liable to Wealth tax. However if there is any liability against the said asset, the same is to be deducted before computing the taxable wealth.

Hello,

1) If an individual owns more than one house property for his use, then under the provisions of the Income Tax Act, 1961 (the ‘Act’), any one property as per his choice is treated as self-occupied and its annual value is computed to be nil. The other house property is deemed to be let-out and a notional rent as per the provisions of the Act is computed as the taxable income under the head ‘Income from House Property’. In other words, the second house is treated as being rented-out and its estimated rental income is treated as taxable income.

2) As the benefit of self-occupied property is available for only one home, the estimated annual rent will be considered as the taxable value.

3) If the second house is let-out to a tenant, the actual rent received, subject to certain conditions, is treated as the taxable income under the head ‘Income from House Property’

4)It would be advisable to purchase the flat in your wife's name. However the loan needs to be taken in her name if possible or alternately make your wife a joint owner with you so that you can get a reduced tax liability in as far as the tax liability is concerned.

1. If you own more than one Self Occupied Properties (SOP), you have a choice to treat any one of the properties as SOP. The other such property (ies) which lies vacant will be treated as Deemed Let Out Property (DLOP) under the Act. If a property is treated as a DLOP, it is effectively put at par with a let out property as far as taxation is concerned. Hence, a notional rental value (method to calculate such value prescribed under the Act) is considered as the gross taxable rent for such property. You are allowed to claim a flat deduction of 30% for repairs and maintenance charges.

2. As the benefit of self-occupied property is available for only one home, the estimated annual rent will be considered as the taxable value.

3. In the event that you let out the second house, the actual rent received is treated as the taxable income under the head ‘Income from House Property’.

4. Under the Wealth tax Act, 1957, Section 5(1) indicates that an assessee can hold one property as a self occupied property and the same be exempt from eligible assets liable to Wealth tax.

If an assessee, holds more than one property, then the second property for the purpose of Wealth tax has to be valued as per the Wealth Tax Rules 1958 and the value in excess of Rs. 30,00,000/- is liable to Wealth tax. However if there is any liability against the said asset, the same is to be deducted before computing the taxable wealth.

5. No income tax liability would arise on the purchase of the second property. The liability to pay income tax would arise only in the event you give the second property on rent, in which case the rent earned from it shall be taxable.

6. If your wife is not an income tax payee the you can make her a joint owner of the second flat to avoid being taxed.