🐕‍🦺 Home Loan Benefits In Income Tax

If you are buying a home for the first time, you are entitled to get income tax benefits under three sections — Section 80C, Section 24 and Section 80EEA of the Income Tax Act. These sections of the Income Tax Act let you avail home loan benefit of Rs 5 lakh annually. Let's understand with this detailed chart of Income Tax sections In this case, Home Loan borrowers can claim tax rebate up to a maximum of Rs.1.5 Lakh on payments made towards principal repayment under Section 80C of the Income Tax Act. However, when it comes to payments made towards interest repayment, one cannot claim Home Loan tax exemption during the pre-construction phase. Here’s how you can get a tax break on your second mortgage: Section 80C: Under Section 80C, you can claim a deduction on the principal amount up to Rs. 1.5 lakh. This deduction can be claimed on many properties, regardless of whether they are self-occupied or rented out. Clause 24 (b): Under this section, you can deduct interest payments up The amount paid as Repayment of Principal Amount of Home Loan by an Individual/ HUF is allowed as tax deduction under Section 80C of the Income Tax Act. The maximum tax deduction allowed under Section 80C is Rs. 1,50,000. This tax deduction is the total of the deduction allowed under Section 80C and includes amount invested in PPF Account, Tax Step 2: Submit the documents to your employer. Step 3: Calculate the deductions you can claim on your home loan. Step 4: Visit the official Income Tax website to complete the submission of your home loan tax. After following all the mentioned steps, download your tax statement for verification. 4. Home Loan Tax Benefits Under Section 80EEA Individual home loan borrowers and first-time homebuyers who had availed of a home loan between April 1, 2019 and March 31, 2022 can claim an additional tax benefit up to a maximum of Rs.1.5 Lakh and over and above the tax benefits available under Section 24b of the Income Tax Act provided they had invested in affordable housing and the stamp value Home loan: Please note that there is no similar provision for reversal of interest benefit claimed under Section 24(b) in the past in case one sells the house within five years from taking the Every homeowner's financial circumstances are unique, so the impact of tax benefits may vary depending on factors such as income, mortgage size and the amount of interest paid. Understanding these benefits helps you see your mortgage not just as a debt but also as a tool to optimize your finances. The aforementioned sections for home loan tax benefits are already in place in 2020 and are most likely to continue going forward this year. However, the Modi Government is expected to relax the eligibility criteria for available tax rebates under Section 80 EEA. Tax Deduction for joint home loan. If a home loan is taken jointly, each borrower can claim a deduction on home loan interest up to Rs 2 lakh under Section 24 (b) and tax deduction on the principal repayment up to Rs 1.5 lakh under Section 80C. This doubles the amount of deductions available when compared to a home loan taken by a single applicant. Benefits of Home Loan in Income Tax under Section 80C (xviii) A homeowner can claim a deduction of up to 1.5 lakhs under this section on repayment of the principal amount of the home loan during the year. A deduction for stamp duty and registration fee can also be claim u/s 80C (xviii) but within the overall limit of Rs 1.50 lakhs. Home Loan Tax Benefit Calculator | Income Tax Home Loan Benefits, Deductions & Exemptions 2022-23In this video by FinCalC TV we will see Home loan tax benefi Even if the bank issues a single certificate for a joint home loan, the individual co-borrowers can claim the tax benefits in the ratio of their share in the home loan. Please note that the New tax regime only benefits low-income groups Chitra Gopalaswamy, a former corporate banker and homebuyer in Bengaluru, said that under the old tax regime, one could claim an income tax deduction April 8, 2017 at 11:01 am. 1 – It is possible and eligibility criteria may vary from bank to bank. 2 & 3 – Yes, all the borrowers who are co-owners can claim tax benefits on home loan 4 – Kindly check with a banker/any lending institution. Budget 17-18, restricts tax benefits on home loan to Rs 2 Lakh only! QKW3mH.

home loan benefits in income tax