Availing advances such as home loans offer you with several tax benefits. Some of the home loan tax benefits are discussed below.
Section 24(b) -Under Section 24(b), borrowers can claim tax benefits for the amount paid against their interest rate of home loans. The maximum deduction limit is fixed up to Rs. 2 Lakh. Borrowers can claim such deductions at the end of each financial year during filing income tax returns.
- Section 80C - You can claim deductions of up to Rs. 1.5 Lakh under Section 80C. Such deductions can be claimed against your principal amount.
Within Rs. 1.5 Lakh you can also claim tax benefits home loan for the amount paid as stamp duty and registration fees under this section. However, such deductions can be claimed only for a year in which you have availed your credit.
Section 80EEA - You can avail tax deductions of up to Rs. 1.5 Lakh under section 80EEA. To claim such deductions, the stamp value of your property should be below Rs. 45 Lakh. Also, during your loan application, you should not hold another property in your or any of your family member’s names.
In addition to the above, joint applicants can also claim home loan tax benefits under the sections mentioned above. To be eligible for such deductions, the co-applicant should also be a co-owner of the property.
