3. How to Save on Taxes

If you are the owner of more than 2 houses, you can assign one of them as your primary dwelling. Income earned from this property will be considered zero and will be exempted from tax, even if the house is rented by you. The deduction of 1.5 lakh on the interest of loan is applicable to this house.

Whole of the interest on the loan amount for the other home is eligible for deduction from your income. This criterion is applicable to all non-exempt houses owned by you. So, if you want to multiply your savings, keep house with the highest loan amount as the non-exempt one. But do make sure that the interest payable on this loan amount is greater than the principal amount on the other loan.