Home loan tax benefits prove useful for home loan borrowers in more than one way. However, the most noteworthy is the fact that it helps to save a substantial amount of income tax and in turn, makes purchasing a housing property more affordable
Here are four home loan tax benefits that home loan borrowers must become familiar with to benefit from them accordingly.
- Tax benefit under Section 80C
Under this Section, home loan borrowers can claim an annual deduction of up to Rs.1.5 lakh on the principal loan amount.
- Additional Tax benefit under Section 80C
Home loan borrowers can raise a claim for availing tax benefits on stamp duty and registration charges within a year of the expenses incurred as well.
Individuals must check out the associated tax benefit, home loan eligibility criteria and other conditions beforehand to make an informed decision for their application.
- Tax benefit under Section 80EEA
Those who have availed a home loan under the affordable housing scheme between 1st April 2019 and 31st March 2020 can claim additional deductions on the interest amount of up to Rs.1.5 lakh.
- Tax benefits under Section 24B
Borrowers can also claim a deduction up to Rs.2 lakh for interest paid towards the home loan amount before and after the construction phase. The latter is, however, available annually. For houses purchased with a home loan and rented out, the annual interest deduction is unlimited. To understand the benefit in details, borrowers can use a reliable home loan tax benefit calculator and work out the same.
Besides these, individuals must find out more about the tax benefits and other benefits applicable to the likes of home loans for women. It will help borrowers make optimum savings.
Utilise a home loan EMI calculator before applying to gauge your repayment affordability and start with stable financial planning.
