The government has ruled out rollback of the proposal to restrict tax incentive for second home to 2 lakh rupees per annum. Revenue Secretary Hasmukh Adhia said this while addressing the industry representatives in New Delhi today. <br/><br/>He said, there is no point in subsidising purchase of second property by those who have surplus funds. He added that the tax incentive for second home loan borrower is being virtually misused. Mr Adhia said, it is prudent to subsidise first-time buyer and not the second property owner who is not staying in that, but earning income from that.<br/><br/>The Finance Bill 2017 has restricted set-off of loss towards second home against other heads of income up to 2 lakh rupees under Section 71 of the Income Tax Act. Under the present dispensation, there is no such limit for set-off of loss from house property, which is mainly the difference between the rental income and interest on home loan. In other words, a buyer could deduct the entire net interest paid on the home loan.