What are the tax implications of buying a second home?

If you own more than one house property then as per your choice you can declare one of the two houses as a self occupied property and offer the other house for income under the house property. In this case the municipal ratable value or the fair market rent that this property can be fetched if it was lent is tax under the income from house property subject to certain deductions. Now deductions are you get standard deductions of 30 percent. The municipal taxes paid on this property are allowed as a deduction and any interest paid are allowed as a deduction. The remaining portion will be taxed under the income from house property even if you have not actually lent it out.